It’s essential to check your current insurance policy before renting a vehicle. This you can do to see whether it includes any coverage for car rentals.
However, many insurance policies cover car rentals; thus, you must review your policy to see what is covered. For instance, some policies may not cover loss or damage if you meet with an accident.
Thus, you have to pay charges or administrative fees if any damage is caused. If your policy doesn’t include coverage, you must purchase additional insurance from the rental company.
Read the information below for further details regarding which insurance is best for car rentals.
Standalone rental car insurance policies
Separate car rental insurance is a policy mainly designed to cover rental cars. Insurance companies offer various types of policies that have coverage options. This includes liability, collision damage, and personal accident insurance.
The main advantage of purchasing this policy is that it can provide more extensive coverage than what’s involved in your current policy. Besides, if you purchase this policy, it can provide comfort by knowing that they are fully covered in case of an accident.
Best rental car insurance options
Below is a list of the top 10 best car rental insurance options available in the USA:
- Enterprise Liability Protection
- Geico Car Rental Insurance
- Allianz Global Assistance
- American Express Premium Car Rental Protection
- Avis Rental Car Protection
- Liberty Mutual Rental Car Insurance
- Nationwide Rental Car Insurance
- Progressive Rental Car Insurance
- Budget Rental Car Protection
- Hertz Loss Damage Waiver
Each policy provides various levels of coverage. But you may know that they all offer a mixture of collision, liability, and personal accident insurance.
Additionally, some policies might cover damage caused by vandalism or natural disasters.
So, it’s essential to know the level of coverage you require before choosing a rental insurance policy. Also, choose the policy according to your budget.
Collision damage waiver and loss damage waiver
The company offers two types of insurance when you book a car: a collision damage waiver or a loss damage waiver. These waivers are essential agreements between you and the car rental company.
It shows that the responsibility for damage is transferred from you to the rental car company. Said, if you buy CDW or LDW, the rental company will cover the cost of any damage instead of you in case of an accident.
Furthermore, both CDWs and LDWs can be costly but can be helpful. Sometimes, the cost of these waivers is more than the cost of car rental. Besides, all kinds of damage are not covered by CDWs and LDWs, including damage to the car’s undercarriage.
Thus, you must read the fine print carefully before purchasing a CDW or LDW. Also, you need to understand what is and needs to be covered.
A Like Post – How To Cancel Progressive Insurance
International travel
If you are considering making a reservation in a foreign country, ensure that your rental insurance policy covers international travel, as it is essential. This is because some policies may cover coverage only in Canada, Mexico, or the USA.
So it’s essential to go through the policy carefully. However, purchase additional liability insurance if you book a vehicle in an unfamiliar country. Make sure that the insurance you purchase is fully covered in case of an accident.
Deductibles
Not all, but some rental insurance policies come with a deductible. Before the insurance policy kicks in, you must pay these deductibles. Typically, it ranges between $500 to $1500.
But you may know that it can differ from policy to policy. Thus, you must determine the deductible before selecting a rental insurance policy. Also, ensure you’re comfortable paying such an amount in case of an accident.
Extended rental periods
If you plan to book a vehicle for a week or more, ensure your rental car insurance policy covers the entire period. This is because some policies may provide coverage only for specific days. So, considering the policy carefully is essential.
Additionally, you must purchase a standalone rental car insurance policy if you plan to rent a car for an extended period. This is because it may provide more full coverage than your current policy.
See Also – Diamond Insurance
Reading the policy
Reading the insurance policy carefully before purchasing car rental insurance is essential. Also, you need to know what’s covered and what’s not. Before making a deal with the rental company, you must ask questions if you need clarification on anything in the policy. Moreover, keep a copy of the policy while driving the car. This is because, in an accident, you need to refer to it.
Conclusion
Mostly, rental car insurance can be confusing, but it’s essential to understand before hitting the road. Thus, you need to check your insurance policy that you’re fully covered in the case of an accident. Also, it would be best if you went through CDWs and LDWs, deductibles, extended rental periods, and more. After reviewing all this information, you will know which insurance is best for rental cars in the USA.
FAQs
What is Rental Car Insurance, and when does one need it?
It is a type of policy that provides coverage while renting a vehicle. It covers you in case of theft of a rental car or damage. Also, it is liable for any injuries or damages caused to others while driving a car. Thus, you must purchase rental car insurance if you don’t have auto insurance.
What happens if you damage a rental car without insurance?
You might be responsible for paying for the damages if you damage a rental car without insurance. Besides, you may also be responsible for paying extra fees such as loss of use and diminished value fees. Hence, to prevent these expenses, you must have insurance coverage.
How much is full coverage insurance on a rental car?
The coverage insurance usually depends on the rental period, the type of car you’re renting, and the insurance company you select. It can cost $15 to $30 per day anywhere. Thus, you need to compare policies from different insurance companies and find the one that suits you.
