Rental Car Insurance – Is It Necessary When You Rent a Car?

If you want to rent a car, you might think that insurance is not necessary. On the contrary, it is an important part of the deal because it can cover you and spare you from spending your own money in the event that the car is lost or damaged. However, if you own a car and it is covered by collision or comprehensive insurance, buying rental car insurance for a rented car is not necessary. Here are some pointers you need to consider before purchasing insurance associated with car rental:


1. Ask your insurance company if car rental is covered by your policy.


Your insurance company can surely tell you how much your car is entitled to in terms of coverage. Typically, your own auto policy covers your car rental if it is intended for pleasure. You must be sure that that your car has collision or comprehensive insurance to be covered in the event your rental car is stolen or damaged in an accident.


2. Check with your credit card company if it offers rental auto insurance.


Some credit card companies, especially the big ones, offer rental car insurance to member-cardholders. So if you are planning to go out on a rented car, you should consider making an inquiry from your credit card provider if your own car is not yet covered by a collision or comprehensive insurance.


3. Consider buying a One of these policies:


Collision Damage Waiver


This type of coverage frees you up from financial obligation if your car is stolen or damaged. This however has certain limitations because it can’t cover you if the car gets damaged because you were over speeding, driving under influence or driving on unpaved roads.


Liability Insurance


Normally, car rental companies are required to provide the minimum liability insurance for their cars. However, this coverage may not be sufficient if you are figured in a serious accident. So even if you know that your rented car is covered for minimum liability, you should consider buying a liability insurance of your own to ensure your protection especially if you don’t have comprehensive or collision insurance.


Personal Accident Insurance


In case an accident happens, this type of policy covers you and your passengers’ medical bills. But if you have this in your own auto insurance, this may no longer be necessary.


Personal Effects Coverage


This type of insurance covers in the event the personal belongings you place in the rented car is stolen. You can choose not to buy this however, if those items are already covered in your homeowners or renters insurance.  


When renting a car, don’t forget to secure a car from a reputable car rental company like the Loveland car dealerships. It is perfectly alright to be covered by rental car insurance. It can protect you from spending out-of-pocket money if an accident happens or the car is stolen. But you should not forget that even if you are protected, it is always good to be careful when driving because insurance cannot protect you from injury and wasted time.


photo credit for featured image: Michael Gil (



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