It is compulsory to have car insurance as a driver. This is because insurance covers you from car-related expenses such as accidents, third-party damages, and car damage repairs. But in cases where I do not have a car, do I need car insurance to rent a car?
You do not need to get a personal car loan to rent a car, but there are some car insurance coverage options you can consider getting to rent a car. As an uninsured driver, getting car insurance from a rental company, a credit card that renders rental car coverage, or purchasing short-term car insurance is a good idea. In some instances, you may need to rent a car; rental insurance coverage will cover you in unforeseen events.
Do I Need Car Insurance to Rent a Car?
As previously stated, you do not need your car insurance to rent a car. There are some types of car insurance coverage you can get to rent a car. Some of these coverages include:
- Short-term insurance from a rental company.
- Using credit cards that offer rental coverage.
- Buying non-owner car insurance or short-term car insurance.
Even if you already have car insurance, you may still need to purchase rental coverage to rent a car. It can be expensive to purchase rental car insurance. This insurance can also duplicate your existing coverage. If your car insurance or credit card insurance offers coverage to rent a car, you do not need to purchase a rental company’s insurance policies.
Does my car insurance cover rental cars?
Your already existing car insurance may offer coverage for rented cars. Some car insurance policies that can cover rented cars include:
- Liability Insurance: This insurance is often active when a policyholder gets involved in an accident. It covers the payment of body-related injuries and car damages made on someone else’s car as well as their properties.
- Medical Payments Coverage: This covers the medical cost of the car owner and third party involved in an accident.
- Collision Insurance: The payment for the repairs of damages caused to a car due to a collision with another vehicle, animal, or object is covered under this coverage.
- Comprehensive Insurance: Replacement and repairs of your damaged or lost cars due to collision are covered by this insurance coverage.
- Uninsured and Underinsured Drivers Insurance: Medical care and damaged properties caused by an uninsured driver are covered under this car insurance.
It is advisable to confirm with your insurer if your policy covers rented cars before proceeding with the purchase of car insurance from rental insurance companies. Homeowners and renters insurance covers the replacement of stolen luggage and cameras on a rented car.
Does my credit card cover rental car insurance?
You will be required to check your credit card to find out if it covers rental insurance. You can check it on your credit card agreement or by contacting the number on the back of your credit card. After doing that, go through every detail of what your credit card covers. However, you can compare credit cards offering rental insurance if you have more than one to identify which is better for you.
Credit card rental insurance covers just the same things comprehensive and collision insurance covers. It covers the repairs and replacement of a rented car. Generally, this insurance does not cover medical bills, personal belongings, body-related injuries, or liabilities.
Types of Rental Car Insurance
If your car insurance does not cover rented cars, getting rental car insurance is a good option to consider. Rental car insurance companies offer coverage that protects a rented car; some of these coverages are:
Loss Damage Waiver
Loss damage waiver is also known as collision damage waiver. This coverage is just like collision and comprehensive coverage. It covers the financial expenses for damages and theft to the rented car. Some of its policies cover administrative fees, cover towing, or car replacement while the rented car is being fixed.
Liability Insurance
This covers lawsuit-related costs if a policyholder gets into an accident while in a rented car. Rented car companies are required by law to offer minimum liability coverage levels.
Personal Accident Insurance
Personal accident insurance covers medical expenses for you and your passenger after an accident. If you have health insurance, it may also cover you in such situations.
Personal Effects Protection
This covers the replacement of stolen property from your rented car. This may also be covered by your renters or homeowners insurance, but you will be required to pay the insurance deductible when you file a claim. However, personal effect protection does not charge insurance deductibles, making it a better option.