Featured News 2019 Rental Car Insurance: Is It Really Needed?

Rental Car Insurance: Is It Really Needed?

If you travel at all, there is a chance that you will find yourself renting a car for transportation. When signing the papers for a rental car, everyone experiences the same thing: we aren’t always sure if we should purchase that extra insurance policy for the rental car. While not paying for the insurance saves money, it’s crucial to know if buying this insurance could save you thousands.

Check Your Personal Insurance Policy

There are numerous types of rental car insurance that are provided through the major rental car companies, and the National Association of Insurance Commissioners advises drivers to thoroughly educate themselves before investing in a rental car insurance plan. Education and research will help someone know if they need rental insurance or not. In fact, if you look at the insurance policy you already have, you may be surprised to find that you are already covered when driving rental vehicles. If this is the case, call your insurance company to determine if your policy adequately covers major damage. Even if you already have rental insurance, it may still cost you thousands if an accident is serious enough.

Check Your Credit Card’s Benefits

Some credit cards offer benefits for rental insurance. Cards intended for frequent travelers are the most common type of credit card to offer these benefits. Check with your card issuer to see if your credit card provides rental insurance benefits. Most drivers are unaware that many credit cards have added benefits for rental care protection for car holders. These benefits are secondary to any personal auto insurance or car rental insurance and will only kick in after all other insurance coverage has been used up.

What Does Rental Car Insurance Cover?

The most common option that you will be presented with is the Collision Damage Waiver (CDW). Also known as the Loss Damage Waiver (LDW), this protects the driver by providing additional damage coverage for the rented vehicle. This type of rental insurance is usually not necessary for drivers who own their own car and have comprehensive collision coverage. A CDW transfers a percentage of risk from the car renter to the rental company. This type of coverage usually runs around $20 per day.

Another type of rental car insurance is personal accident insurance. This coverage protects the renter and other passengers from medical bills that result from a car crash. Individuals who do not have adequate health insurance and disability income insurance should consider this additional protection, especially since it only costs a few dollars each day. Liability insurance protects the renter from the risks and liabilities of damaging another person or their property. For example, if you rented a car and then crashed into a motorcyclist because you were texting, this insurance covers the medical expenses and damages caused to the motorcyclist and the motorcycle.

Making a Final Decision Rental Car Insurance

Instead of randomly picking a package, you should call your insurance agent for accurate information about your current coverage. If your plan does not include partial or full liability while renting, you can request to add coverage for a small fee.

Still unsure about what insurance coverage you need? A knowledgeable car accident lawyer can help you make an educated decision that protects your rights and saves you money as well. When you seek counsel from a legal expert, you can enjoy your trip with the confidence that you are protected from additional costs or liability. Learn more about your rights and whether you need insurance when you call a car accident attorney in your area today. Use our directory to find a lawyer near you!

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