Last week I took a trip and needed to rent a car. I got to the counter and the man working the desk showed me various spots to sign on the dotted line before I could get the keys. After several signatures, he said “And sign here to indicate that you have waived car insurance coverage for your rental this week…”
Hold on.
I didn’t remember waiving coverage, and I didn’t remember if my own auto insurance policy would cover my rental. I asked for more information and learned that an additional insurance policy for the rental would be upwards of $30/day. By agreeing to the policy, I would pay triple the amount I typically pay for my own car insurance premium in a month!
The line was growing behind me, and I didn’t have time to look up my policy to see what it may include.
So here’s to helping you navigate car rentals with knowledge!
Do You Have to Buy Rental Car Provider’s Insurance Coverage?
Well, there are a couple of factors.
Does Your Policy Include Rental Coverage?
First, you need to call your agent and determine if your policy provides the coverage you need in the event of an incident in a rental car. There are two basic coverages you may already have that you should explore:
- Liability Coverage
- Personal Accident Coverage
If you already have these insurances, make sure they apply to a rental and you can decline these specific coverages at the counter.
What is the Purpose of Your Rental?
Another consideration is the purpose of your rental. Often times your policy will apply if you are using the car for personal use. However, if you are on a business trip or some sort of professional endeavor then policies are sometimes not applied.
How are You Paying?
This is a consideration that is not necessarily intuitive. However, if you are paying for your rental with a credit card you’ll need to check with the credit card company as well. Sometimes, credit card companies will provide additional coverage. A definite bonus and decision maker as to how you pay if one applies!
Have You Signed a Loss-damage Waiver?
This waiver protects you as the driver from the financial responsibility for the rental car in the event of an incident. If the car is damaged, then it will be the responsibility of the rental agency with this type of coverage. This includes towing charges or other fees related to the incident.
The bottom line is, call your agent. Before you go on your trip, talk together and look up your policy to determine what coverage you already have and what you might need. Different policies offer varying levels of protection. Know what you have.
Insured through Henry Insurance Services? We’d love to review your policy with you! Call (225) 927-0451 to speak with your agent before your next rental need!
