More rental cars will be rented between June and September than any other time of the year. When you get to the rental desk, you are asked the question, “Do you want the insurance?” Too many travelers do not know if they need additional coverage or not, and buying the rental car insurance can add hundreds of dollars to your bill. Auto insurance policies differ, but the most important thing is to make sure that you are covered.
Collision Damage Waiver
When you are determining whether to purchase a damage waiver, there are two key considerations: (1) whether you are already covered by existing insurance and, if not, (2) if the benefit of having a damage waiver is worth the cost.
The CDW is sold by the rental car company and only applies to rented vehicles. This limits the rental car company from attempting to collect (from you) for any damage to the rented vehicle.
We recommend that you call our office to verify that you have the correct coverage.
Rental Car Insurance
- Always check your current auto insurance policy before you rent a car, to see what coverage you may already have that extends to a rental car.
- If you carry comprehensive and liability coverage on your personal car, coverage will extend to your rental car. Usually, if you’re renting a car of similar value to your personal car, in all likelihood the insurance coverage will be adequate for the rental.
- If you're not currently insured with an auto policy, you'll need to at least buy coverage from the rental company before you hit the road.
- Auto liability limit requirement may vary from state to state; if you buy minimum limits of coverage you may not have enough coverage in the state in which you rent your vehicle.
- If you are only insured under a commercial auto policy, you will want to purchase the extra coverage.
- If you are driving abroad (apart from Canada), your current car insurance won't cover you.
- Some major credit cards also offer rental car insurance options and solutions.
- If you want to protect your personal auto insurance policy from further claims, then buying the extra coverage may make sense.