Just because you are renting a car doesn’t mean you need insurance. Almost every car rental company in the United States, Canada, and Mexico offers optional insurance. Some companies like Budget and Hertz have car rental insurance included in your rental. Others like Avis, Alamo, and Thrifty make you buy it. But if you are just driving locally, you generally don’t need it.
- Do I need insurance to rent a car?
- How do car rental insurance policies work?
- What does car rental insurance cover?
- Is car rental insurance worth it?
- How to find the best car rental insurance
Do I need insurance to rent a car?
The short answer is no. Car rentals have always been an accident-prone business. As a result, most car rental companies have insurance, so most renters will have coverage. Why do car rental companies have insurance? To be sure, the cost of insurance is often cheaper than getting a claim approved.
Renting a car for a few days to test-drive it, or do a few errands, isn’t worth the risk to your car. But the fact is, auto theft is on the rise in the United States, and there are a lot of scenarios in which a rental car could be damaged. Here are some of the most common scenarios that may cause problems with car rental insurance: Someone steals a rental car A malfunctioning electronic lock or a security sensor could allow someone to access a car that should be locked.
How do car rental insurance policies work?
Car rental insurance policies usually take three primary forms. They can be renter’s insurance, roadside assistance coverage, or both. Each has pros and cons and will depend on your needs. Here are some basics to know. When to buy car rental insurance. There is usually a minimum coverage amount that you must purchase on your insurance policy. Generally speaking, this means that at least $500 in liability coverage (property damage and bodily injury) must be purchased on your policy before you can rent a car.
If you rent your car for less than 30 days, you can rent a car without a collision or comprehensive insurance policy. But at a minimum you need one. You also need to pay an extra fee for your insurance on the day you rented the car.
What does car rental insurance cover?
Every company defines what it covers differently, so it’s hard to give a definitive answer. However, here’s a summary. This is standard insurance offered by almost every company, including Budget, Avis, and Thrifty. It includes a maximum liability limit of $50,000.00 (USD).
It covers damage and theft to the vehicle, and you pay for this coverage separately on your car rental insurance policy. This means you pay $100 per day for both theft and collision coverage, $50 per day for collision, and $20 per day for personal liability. If your car is hit, a staff member must report it to your car insurance. A few companies offer extra coverage like roadside assistance, 24-hour vehicle service, and garage fees for rented cars.
Is car rental insurance worth it?
When it comes to car insurance, many Americans think that it’s too much hassle. They don’t want to pay for insurance and they don’t want to be responsible for the stuff they drive. But if you rent a car, you need car insurance. And not just any car insurance. If you drive a rental car, you need rental car insurance to cover you if something happens to the rental car you rented.
You’ll Have To Pay A deductible is basically the amount of money you have to pay out before your insurance company will agree to pay you back for what you paid for the car. Every insurance company will come up with their own deductible based on your driving record.
How to find the best car rental insurance
Most car rental insurance companies offer coverage levels ranging from $100 to over $1,000 a day. The best insurance typically covers accident, theft, damages, injury and personal injury (injury to persons). In addition, some plans provide “full replacement cost coverage” which will reimburse you for up to the value of your car.
With these types of insurance, you can make the deductible of your policy high enough so that you won’t have to worry about the money needed. One insurance company with a large presence in the rental car industry, GetMyAutoInsurance, says it offers “high” rental car insurance that would cover accidents, theft, loss of spare parts, rental lockouts, and foreign reporting violations.
Check with your personal auto insurance provider and it’ll tell you whether you should buy an additional coverage or not. As long as your auto insurance company covers you for driving, you should be fine. And even if your car rental company doesn’t offer it, if your personal insurance company doesn’t cover you, you can usually buy it online at a cost of about $10-$20 per day for one day car insurance. But it’s worth a call to check.
Want to know more about car insurance? Visit Car Insurance Grades.