Car Rental Insurance

Should I buy insurance from the car rental company?

YouTube video — Do you really need the insurance that rental car companies offer? Watch as Ellie Platt, agency owner, tells all.

Vacations are the perfect for taking time off and spending it with your family and friends, but sometimes all the planning it takes can be overwhelming. Nowadays vacations can be pretty costly, especially when it comes to transportation. Whether you are going on a road trip or flying into a new town, rental cars are a must! So, we often get the question: Do I need to purchase insurance from the rental car company?

Rental cars are a big topic at Platt Insurance and whether you decide to purchase coverage from the rental company is ultimately based on your individual needs and the level of risk you are willing to take.

If you currently have car insurance with Liability coverage AND Comprehensive and Collision coverage, that coverage will extend to any rental car you drive. This means that you don’t necessarily NEED to purchase coverage from the rental car company. However, here are some facts to consider…

Deductibles:

If you’re driving a rental car and you’re in an at fault accident, you will need to pay the deductible on your car insurance before other damage is paid. Most car insurance deductibles range from $500-$1000, but if you purchase the insurance from the rental company deductibles are usually zero or next to nothing. Either way, it’s important ask the rental company about their deductibles and compare with what you have on your car insurance.

“Loss of Use”:

This is where you need to take a closer look at the fine print on your rental company contract. Most rental car companies will charge you for the income they lost while their vehicle is being repaired. Unfortunately, almost all standard car insurance excludes “Loss of Use” for rental cars. Even for just a few days, these bills can be thousands of dollars and you would be held responsible to cover these charges.

Claims:

You might also want to consider that if you file a claim on your personal auto insurance policy, it could cause your insurance rates to increase. By purchasing rental car insurance, you can avoid making a personal auto claim.

Convenience:

If you were to get into an accident in a rental car, you would have to go through the claims process with your personal auto insurance company. By purchasing rental car insurance, you can simplify the process and avoid having to file an auto claim, along with any potential delays or complications this may result in.

We know the last thing you want to worry about on vacation is insurance, so be sure to regularly review your coverage with an independent insurance agent to ensure you are properly protected.

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