What Is Rental Car Insurance

Renting a car represents a problematic issue, from insurance’s point of view. A car that you do not own may not be covered by your personal liability coverage. In some cases, the coverage you own may extend to a car you rent, but in many cases, this is not possible. And this is where purchasing rental car insurance is an option. Carefully read your contract before renting a car and see if you need rental coverage. Check our webpage for free online quotes for car insurance if you need rental insurance.

Rental car insurance is typically sold by the rental companies and act as a replacement for your personal coverage.  The rental coverage typically includes the following:

  • car-rental-insuranceA loss-damage waiver (LDW), also known as collision damage waiver (CDW), covers any damage to the rental vehicle or theft of the car. It’s technically not insurance but rather a waiver that says the rental car company won’t track you in order to recover money. Usually, if you have comprehensive and collision coverage, your coverage will extend to your rent car, but you will still have to pay the deductible.
  • You will also have to buy a supplemental liability coverage, if you have a minimum state-required liability coverage. Again, your liability coverage may extend to a rent car – you should ask your insurance agent if this is possible. Usually the upper limit for this supplemental coverage is around $1 million.
  • The rental company will also sell personal accident coverage that will pay for the medical costs resulting from an accident. This covers ambulance, medical care and death benefits. This can be considered a supplement to your existing health and life insurance coverage. Also check if your PIP/Medicare coverage for your personal car extend to the car you rent.

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