What does rental car insurance cover?

Understanding Your Rental Car Coverage

When renting a car, you may be surprised to learn that the rental company’s insurance coverage may not fully protect you against potential damages. It is important to know what coverage options you have when renting a car and what you should look out for before signing a rental agreement.

First, you should be aware of the rental company’s basic coverage. This is typically a Basic Liability Insurance, which covers damages to third-parties, and a Loss Damage Waiver (LDW) which covers the cost of damages to the car itself. However, you should note that this coverage is often subject to a deductible and requires you to pay out of pocket for a certain portion of the cost.

You should also consider additional coverage options that may be offered by the rental company. These include Collision Damage Waiver (CDW), which covers damages caused to the rental car stemming from a collision, and Personal Accident Insurance (PAI), which provides medical coverage for passengers in the event of an accident. It is important to note that these additional coverages may not cover all possible damages.

You should also be aware that Loss of Use coverage is not included in MOST insurance company policies. If you purchase the coverage from the rental company, this will be covered. Just say that you’re involved in an accident in the rental car. The rental car is out of service for two weeks while being repaired. You can be charged the per diem limit until the car is roadworthy again.

Finally, you should check with your personal auto insurance provider about your coverage when renting a car. Many auto insurance policies provide coverage for rental cars, covering you against damages to the car or damages to other people in the event of an accident. It is important to check with your auto insurance provider to learn exactly what is covered, as each policy is different.

By understanding the rental company’s coverage and checking with your own auto insurance provider, you can make sure you are sufficiently covered when renting a car. Knowing what coverage options you have is the key to protecting yourself against potential damages.

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