Do You Need Rental Car Insurance?

What Does Rental Car Insurance Cover?

Car insurance for rental usage usually provides the following coverage:

  1. Collision Damage Waiver (CDW)
  2. Liability Insurance
  3. Personal Accident Insurance (PAI)
  4. Personal Effects Coverage

Some rental car companies combine personal accident and personal effects coverage together as one type of insurance, while others sell it individually.

Do You Need Car Insurance for Rental Car Usage?

If you’re planning a trip that involves renting a car, check the fine print on your personal car insurance policy before you leave for your trip.

  1. If you have comprehensive and collision coverage on your personal automobile insurance, in most instances the coverage and deductibles will extend to your rental car. You’ll also want to make sure the coverage you have on your personal car insurance is sufficient to cover your liability for damages to the rental car.
  2. If you don’t have personal car insurance, you probably should reach out to your credit card companies to see if they can provide coverage.
  3. If you don’t have both insurance mentioned above, you’d better purchase insurance from a third party or the car rental company you are using to protect your entire trip.

If you want to learn more regarding rental car insurance, check out our articles regarding Do I Need Rental Car Insurance? and Does Car Insurance Cover Rental Cars?.

If you want to compare and find affordable car insurance right now or switch from your current insurance company, use our free car insurance online quote service.

About Dale Williams

Dale Q. Williams, MBA, is a well-respected financial executive whose experience spans from insurance to investment banking. Dale has first hand underwriting experience through working for one of the largest U.S. based insurance carriers, and advisory experience from working for several bulge-bracket and middle-market investment banks. Dale also received his MBA from University of Chicago Booth School of Business, with concentrations in finance and accounting.