What Is Rental Car Insurance & Do You Need It?

It's wise to carry insurance if you drive, regardless of whether you own a car or rent one.

If you're renting a car, the rental company may offer you insurance on the spot. Rental car insurance is optional, but it's a good idea, particularly if your auto insurance policy doesn't extend to rented cars.

Don't mistake rental insurance for rental reimbursement. That's an add-on coverage that reimburses the cost of a rental if yours is totaled. If you find that your car insurance plan doesn't extend to rentals, it's worth purchasing rental car insurance.

• What Is Rental Car Insurance?
• Do You Need Rental Car Insurance?
• What Companies Offer Rental Car Insurance?
• Frequently Asked Questions About Rental Car Insurance

Rental car insurance covers your rental car for medical and property damage if you are in a crash. Car rental companies offer optional coverage when you transact with them. You can also check with your auto insurer to see if they will cover your car rental or if you can purchase a temporary rental policy. Doing this can help you avoid purchasing unnecessary coverage.

It’s good to understand that rental reimbursement is not the same thing. Rental reimbursement is an auto insurance add-on that reimburses the cost of renting a vehicle if you need one after your car is totaled.

Standard rental car insurance includes several coverages. These can comprise liability insurance, collision damages and personal effects loss. You must understand each of these to make an informed decision about which ones you need.

When a car rental company offers insurance on the spot, you may run into terms that sound like they’re offering you coverage. However, these are waivers that you may want to get. If you decide to go with any of these, you’ll have to pay extra.

The answer to the question, “Do you need rental car insurance?” depends on your specific situation. There are scenarios where it’s an excellent option, such as when you’re renting an expensive vehicle. If you’re not covered, you’ll have to pay for any damages, which may be costly. You may not need rental car insurance if you can find protection elsewhere, like your personal auto insurance policy or credit card.

Examining your situation can help you decide whether you should get rental car insurance. Before deciding to get a rental policy, it’s smart to evaluate any coverage you already have. If your car insurance policy or credit card provides coverage for rentals, then purchasing it may be redundant. If you don’t have a car and regularly rent one, purchasing non-owner car insurance may be a more affordable alternative.

Rental car insurance is a smart idea when renting a more expensive vehicle or if you want additional coverage. You need to carry insurance to drive (except in New Hampshire and Virginia). So if you need to rent a car but aren’t insured, it’s an excellent option to get temporary coverage.

Some standard car insurance policies extend coverage to rented vehicles. If you’re not sure whether or not this is the case for you, the best thing to do is to get in touch with your provider. If it offers rental coverage, you don’t have to purchase a separate rental policy, which helps reduce costs.

You can purchase rental car insurance from various providers. Most car insurance companies consider this a separate product, so you can check with your insurer to find out if getting it through them is an option. If it isn’t, there are stand-alone companies that specialize in this, such as Avis, Hertz and Enterprise.

You have several options when it comes to rental car insurance providers. You can get a policy directly from a rental car company. You can also check with your insurer to determine if your current policy covers rentals. Your credit card may also offer rental car coverage if you pay for your rental using the card. If not, you can purchase a separate policy.

If you’re not familiar with car rental insurance, it may seem confusing. Our guide addresses the most commonly asked questions about this rental insurance to help you decide if it’s something you need.