Do I Need Rental Car Insurance?

If you’re renting a car it’s important to make sure that you have enough insurance coverage in case of an accident. The first step to take when renting a car is to check the coverage on your own car and medical insurance policies. After reviewing the policies you currently own, if you believe you need extra coverage then you can analyze what insurance options are available to purchase from the rental car company. Whatever your decision is, make sure that you have enough insurance protection to cover for unexpected events such as stolen objects or a fender bender.

Rental Company Insurance Options

Before purchasing insurance from the rental agency make sure you review what each of the policies covers and compare them to the ones you already own. Some of these policies will offer the same coverage as your own car or medical insurance and they’re not worth the investment.

The most common insurance policies that a rental company offers include:

  • Personal Accident Insurance
    Covers medical costs for injuries suffered by you or any passenger. Check if your regular car insurance or personal injury protection (PIP) doesn’t have the same liability limits that the rental company’s insurance is offering. If you live in a no-fault insurance state, you are required by law to carry PIP insurance so purchasing Personal Accident Insurance with your rental car may not be necessary.
  • Collision Damage Waiver
    This waiver covers the value of a rental car that is stolen or damaged during a crash. The renter can be held financially responsible for property damages if the rental car wasn’t driven by one of the authorized drivers, if you were speeding, or driving under the influence. Premium credit cards and your main car insurance may already offer this type of protection, it is advised to check if you already have this coverage before purchasing it with your rental.
  • Liability Insurance
    By law, rental car companies must offer the minimum amount of insurance coverage that the state requires, liability insurance offers extra protection over the required legal limit.
  • Personal Effects Coverage
    PEC insurance is used to cover the losses of any personal items that are stolen from the rental car.

What to Do After an Accident With a Rental Car

The steps following a car accident in a rental car are almost the same as in your own vehicle. You should stay at the scene of the accident and call 911 even if there are no injuries. Calling 911 and having the police prepare an accident report can be helpful when filing a car accident claim. Move your car to the side of the road and stay at the scene of the accident if it is safe to do so. Take pictures of property damage if you can. Ask for contact and insurance information from all the parties involved. Call the rental company as soon as possible and let them know that you have been in an accident. Ask them what you should do with the car and when and how should you file an accident report with them. If you have issues with the insurance claim a car accident lawyer can guide you through the process and represent you during negotiations with the insurance and rental company.

Purchasing insurance when you rent a car will protect you from unexpected expenses like a car accident, injuries or theft. Review the policies you already pay for and purchase extra liability coverage if necessary. Remember to practice safe driving techniques and never drive distracted or under the influence.

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