Do You Need To Purchase Rental Car Insurance?

Whenever you make a trip, whether for business or pleasure, it seems that you will need to rent a car. After you select your car, you need to determine if you need to purchase rental car insurance.

If you are traveling for business, be sure and check with your company policies. Some corporations require that you get the rental car insurance and some will not reimburse you if you purchase it. They are footing the bill for the coverage, so do what they tell you.

If you are paying for the rental car insurance out of your pocket, you need to check to see if you need the coverage. Check with your personal auto insurance agent, they can tell you if you need to purchase additional coverage. Most personal policies will cover your insurance needs.

Most people pay for their rental cars with a credit card, and most (but not all) credit card companies have some form of car rental insurance coverage. Again, you want to check with your company, some will pay only a certain amount and will not cover luxury cars. The amount of coverage will vary, so do not make any assumptions.

Before you sign for the car, go over it carefully, checking for damage. Note the damage on the contract, and take photos of the damage with your camera phone or digital camera. Make sure the agent signs the form noting the pre-existing damage, otherwise you could end up with a nasty vacation reminder that could cost you thousands of dollars.

The various types of rental car insurance are listed below:

Supplemental Liability Insurance: Depending on which state you are renting the car in, the basic liability level is included in your rental agreement. However, this basic level will not provide you with sufficient coverage if you are involved in an accident. The rental car company will supplement the liability insurance above the minimum levels of liability insurance. Typically, your personal car insurance policy should cover you when you rent a vehicle

Collision Damage Waiver: This covers damage to the vehicle that is involved in an accident or is stolen. Again, your personal insurance plan may cover this. Also, many Gold or Platinum credit cards will offer coverage, but it varies from card to card.

Personal Accident Insurance: Provides medical benefits for the renter and passengers of the rental car in case of an accident. You may be covered under your health or life insurance policies, as well as covered under your personal auto insurance policy. Depending on the state you rent your car in, some states required the car rental company to provide this insurance at no additional cost.

Personal Effects Coverage: This covers the theft of your personal things from the car, such as your luggage or laptop computer. You may be covered under your home owner or renter insurance policy, check with your agent before you make your trip.