Understanding Rental Car Insurance


If you have difficulty in buying a new car, you might opt to rent a car. But getting proper auto insurance for a rental car is a process full of uncertainty and confusions.

Should I get policy from the rental company? Does my policy cover rented vehicles? Am I covered if I use my credit card to rent the car? All of these are questions that come to mind when thinking about obtaining auto policy for a rental car.

To help you answer these questions, take these steps so that you will understand the basics of rental car insurance.

The first important step before renting a car is to see your current auto insurance coverage and with your credit card companies. You should determine what kind of rental auto policy you already have in place. Having some background knowledge before you enter the process with renting a car is very helpful.

The second step you can do is to understand that the rental car policies vary widely depending on the type of credit card you have. The issuer and even the bank that provides your credit card will also determine the coverage you will get.

Normally any coverage provided by your credit card will involve damage or loss to the rental. However, your personal belongings, personal liability, other cars and other’s property are not covered.

It is advisable that you should check each credit card that you carry. You will able to find out which one offers the most secondary coverage and affordable insurance for rental cars.

The third thing to remember is to decide if you are renting a car for pleasure and not business. If yes, the coverage and as well as the deductibles you have on your car will apply to the rental.
If you like to have your rental car the highest level of coverage, choose the comprehensive coverage. But if you have dropped comprehensive or collision auto coverage on your car remember the rental won’t be sheltered in case of theft or an accident.

The fourth step you should do is to check with your provider for any discounts it might offer if you will get your rental car policy with them. Your auto insurance rates might be less expensive than buying auto coverage through the rental company.

Remember also to do this last step, which is adding coverage through the car rental service. You can do this by knowing where you are covered through your personal best auto insurance and credit cards.

You would just choose carefully with these options. The options include loss damage waiver, personal accident coverage, liability coverage and personal effects coverage. Make sure that you will be fully protected with the options you chose.

If you have understood these steps, you should contact your insurer immediately and settle your policy. You can save money and be protected if you have choose carefully the right policy for your rental car. Buying your new car is not far enough for you to achieve.