Do I Need to Have Rental Auto Insurance for My Road Trip?

Road trips are becoming expensive, with the cost of gasoline and rental cars increasing due to inflation. Rental auto insurance is another factor that adds up to these expenses, making your trip even pricier. Some drivers use their credit cards and existing auto insurance to ignore rental car insurance. Though it could save you some cost, you won’t be fully covered during at-fault accidents. Therefore, learning about the rental car insurance (like what and when it covers) is essential before deciding to waive it.

Is It Ok to Waive Rental Insurance If I Have Personal Auto Insurance?

It depends on your policy. If you have basic auto insurance, it will only cover you, not your rental car. For example, it will cover you against third-party bodily injury and property damage resulting from an accident involving your rental car. However, it won’t cover the cost of repairing your rental car.

If you have comprehensive and collision coverages in your auto policy, you can waive the rental company’s policy. This is because these coverages will cover damage to the rental car resulting from theft, vandalism, fire, flood, and collision with another vehicle or object.

Also, check whether your policy covers administrative fees, including loss of use and towing, as the rental company may charge for the time the car is in the repair shop.

Does Involving in an At-Fault Accident Increase My Auto Insurance Premiums?

Yes, it will raise your premium just like it would if you were driving your car. However, you can avoid it by paying for the rental company’s policy.

Will My Credit Card Cover Me?

Your credit card may cover you in some circumstances if you use it to pay for the rental car. American Express credit cards (including all of its US business and consumer cards) cover loss and damage to rental cars, whereas Visa cards offer some level of collision coverage. Discover Financial Services has stopped providing rental auto insurance benefits on its credit cards since 2018.

Are My Damaged or Lost Suitcases Covered?

Generally, your home insurance, renters’ insurance, or personal property insurance will cover loss/damage to your personal belongings. However, if you do not own any of these policies, your rental auto insurance will reimburse for such losses.

Is There Any Other Way than Accepting the Rental Company’s Insurance?

Yes, you can opt for supplemental coverage from third-party insurance companies, as it may cost less than rental car insurance.

 What Should I Do in Case of Hiring a Car-Sharing Service?

First, make sure to review what your existing auto policy and credit cards cover. Then, check what your car-sharing service offers, as some companies offer liability coverage and various levels of physical damage protection.

Cover Your Road Trips with Our All-Inclusive Auto Insurance

Having a comprehensive auto insurance policy will save you from paying for the rental company’s policy. If you have any questions about auto insurance, contact our agents here at Duane Weber Insurance, Inc. today, and we will assist you.