It's springtime and you've booked your vacation. You're packed and ready to go. Or are you? If you plan to rent that sporty convertible, you may need rental car insurance. Before you're standing at the car rental counter, avoid the stress of an on-the-spot decision by knowing your options ahead of time.
A survey conducted by the National Association of Insurance Commissioners (NAIC) estimates that almost half of the consumers they questioned were confused about rental car insurance, and in most cases, purchased unnecessary insurance for this reason, resulting in unnecessary expenses. This in turn, makes insurance a nice profit center for rental car companies.
The best way to ensure you are covered and avoid paying for something that's not needed is to eliminate that confusion.
Here are a few tips to help you get in the know:
- If you have auto insurance, check with your insurance agent and find out if your policy covers rental cars. If it does, it may only cover a car rented for a personal vacation, and not a business trip. If you do not have comprehensive and collision coverage on your existing auto insurance policy, then a car you rent will not be covered in the event of an accident or if it is stolen.
- If your auto policy does not cover rental cars, ask about adding a rental car insurance rider.
- If you don't own a car, seek out a quote for a non-owner auto liability insurance policy. This is ideal for the frequent traveler, but it may not be cost-effective for those that only travel once or twice a year, since the average coverage costs about $200 - $300. This policy provides liability coverage, which covers damage to another's car and injuries of its occupants in the event of an accident. It would also cover a hit-and-run driver, the uninsured and underinsured, and medical costs for you and your passengers. What it doesn't cover is comprehensive collision coverage for the car you are renting.
- Some VISA and Mastercard credit cards may provide comprehensive and collision coverage when you use their card to rent the car. Check with your credit card company, since insurance coverage policies vary from company to company.
- By law, you are only required to have liability insurance for rental cars. If you have an umbrella policy along with an existing auto/home insurance policy, you should have plenty of coverage.
It's also smart to be aware of other types of insurance that car rental companies may bring to your attention. Personal Effects Coverage, which covers items that are stolen from your rental car, should be included in your home or rental insurance. Personal Accident Insurance for medical expenses should be covered by your existing auto insurance policy or your health insurance.
So relax and enjoy the warm breeze from your convertible, knowing that your smart insurance choices have you covered.
Make it easy on yourself. Complete an auto insurance quote request in just 6 minutes and let the industry's best agents compete for your business.
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