Do You Need to Buy Rental Car Insurance?

Rental car insurance can be confusing. You need to make sure you have enough insurance to cover you in case you have an accident, but you don´t want to pay for coverage you already have.

Don´t wait until you´re in a quandary at the rental counter. Before your next business trip, find out if you´re covered through your own automobile insurance policy or through your credit card company.

Auto Insurance
Call your agent to find out what your auto insurance policy covers when you rent a car. To be properly covered in your rental, your existing policy must include liability, comprehensive and collision coverage for rental vehicles. Liability insurance covers you if you injure another person in an accident, and comprehensive and collision insurance cover you if you damage the rental car.

Credit Cards
After you know what your auto policy covers, check with your credit card company. Some credit card companies offer collision and theft insurance when you use their card to pay for a rental, but this coverage is usually secondary to your personal auto policy. Significant restrictions may apply: For example, the card company may require that you decline the rental agency´s collision damage waiver — a provision of your rental agreement that limits your liability for damages to the car.