Rip off Sheet: Do You Need Auto Rental Insurance?

Last Updated on October 25, 2022 by Elizabeth

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Do you dread standing at the rental car counter, unsure of which insurance you should buy and which you can decline? Do you need car rental insurance? Here’s a handy cheat sheet to help you take some of the stress out of renting a car.

Know If You Already Have Coverage

First, figure out about car rental insurance is whether you already have coverage. That will largely depend on: (a) whether you’re renting for business or leisure; (b) whether you own a car and have personal auto insurance; (b) which credit card you intend on using to pay for the vehicle.

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Traveling for business? Find out if your employer provides some company coverage. Government employees, including military and postal service workers, are typically covered when traveling for business. Always check before getting to the rental car counter.

Know The 4 Main Types of Car Rental Insurance

1. Collision Damage Waiver (CDW)

Often called Loss Damage Waiver (LDW), this is arguably the most important kind of coverage. It states that the rental car company will waive some or all of the fees if the rental car is damaged or stolen.

Note that, even if you opt for the CDW, there are situations that will void the coverage. For example, if the vehicle is damaged due to reckless driving or while being driven by someone not listed on the agreement, you’re out of luck.

Do you own a car? Your personal auto insurance is likely to include primary coverage for car rentals. Many credit cards offer secondary coverage. This means that if you were in an accident, your auto insurance would kick in first. Once your deductible is hit, the auto insurance company would pay out up to the limit of your coverage. Any remaining expenses would then get paid by the insurance benefit offered by your credit card.
Don’t own a car? Your credit card may become your primary insurance provider, though there may be limitations to what is covered. Always check to see what is covered as a travel benefit. Note that Citibank recently announced it will be ending the car rental insurance perk for virtually all of its cards.

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2. Personal Accident Insurance (PAI)

This insurance accidental death and emergency medical expenses covers the renter and all passengers in the rental car. PAI is typically lumped together with another product called Personal Effects Coverage (PEC), which can bring the total additional cost to $5-11 per day, depending on where you are renting, plus taxes and fees.

Do you have health insurance and life insurance? If so, you are likely covered in the US. But before traveling abroad, you would need to purchase separate travel insurance.

3. Personal Effects Coverage (PEC)

This covers the theft of possessions from a vehicle that you are renting, up to a certain amount.

Do you have homeowner’s or renter’s insurance? Most people will not need to purchase this insurance, as their personal insurance likely covers most travelers. However, if you’re traveling with high-value items, you may want to consider your options.

4. Supplemental Liability Protection (SLP)

In the event of an accident where you are at fault, this liability insurance provides coverage in the event of bodily injury or property damage to someone other than the renter and passengers in the rented vehicle.

Do you have personal auto insurance? In most states, the rental company must provide state minimum coverage by law, so you usually don’t need to buy any extra coverage to meet legal requirements. If you have a personal auto insurance policy, it should also cover you when you operate a rental vehicle, so buying SLI is likely not necessary. If you don’t have your own car insurance or, for whatever reason, you don’t want to risk having to file a claim, then it may be a good idea to get SLI.

Related:

Should You Buy Car Rental Insurance?
Ultimate Glossary of Car Rental Terms

The post Cheat Sheet: Do You Need Car Rental Insurance? appeared first on AutoSlash.

Frequently Asked Questions

Which place is the easiest to rent a car?

Hotels, rental agencies and airports are the most popular places where you can rent a car.

Online travel websites such as Priceline or Expedia are the best ways to locate airports near you.

You may also want to consider local rental companies if they have locations close to where you live. These are often less expensive and easier to use that booking directly via an airline site.

You might want to consider public transport if you rent a car for less then two weeks. You can take advantage of city-wide bus pass, which allows unlimited rides within a particular area.

You may be able rent a convertible if you are traveling with kids. They offer greater protection for children, which is why some people prefer them.

What documents is required to drive around Europe?

All documentation is required for every country, including passports, visa requirements and customs clearance.

Also, copies of your passport, driving record, and insurance policy are required. The insurance policy will need to cover you while driving in Europe.

In certain countries, you may need to provide proof of ownership. This could be a bill of sale or registration papers.

Some countries require that drivers have a valid driver's licence from their home country.

How can I rent car in another country?

This is best done by using an international rental agency, such as Hertz or Avis. These companies offer both short-term rentals or long-term leases. They have offices across Europe.

They also provide customer service 24 hours a day, 7 days a week.

If renting from them, you don't need any previous experience. They can arrange insurance and breakdown cover. All you need to know about where to go, and when to expect to arrive is

Can I rent a car and drive around Europe?

Yes, you can. You'll need an organized tour booking and separate payment for each day. These tours are offered by many companies.

A primary travel agency might be able to help you rent a car if you need more flexibility. These agencies usually provide various services, including car rentals and city transfers.

They often work with local suppliers who specialize in providing quality vehicles and competitive prices.

Statistics

In 2019, the most crucial factor is the cost and fees of the rental (accounting for 28% of overall satisfaction with the rental experience), followed by the rental car itself at 25% and the pick-up process at 23%. (cnet.com)
For example, the Blue Cash Preferred® Card from American Express earns 3 percent cash back on purchases at U.S. gas stations (terms apply), and the Citi Premier® Card earns three points per dollar at gas stations, too. (afar.com)
Automatics are more expensive (usually about 50 percent more) and may only be available if you upgrade to a bigger, pricier car. (ricksteves.com)
Save up to 30% on your rental car in Europe when you book with us today. (autoeurope.com)
For canceled trips two days or shorter, a guest is charged 50% of one day's trip cost. (insider.com)

External Links

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How To

Things to Consider When Renting a Car

What should you consider before I reserve a rental car for my trip?

When you're looking for a rental vehicle, the following are important points to remember:

There are many options for cars: small, medium, large and minivans.
The price of renting depends on the type of vehicle. Renting a vehicle is as low as $15 per day for smaller vehicles. Larger vehicles can cost you much more.
You will also be charged an additional fee depending on how long you lease the vehicle.
If you rent out your vehicle, you will be charged extra fees.
Renting a car lets you travel at any hour of your choosing. This option has its limitations. You cannot rent a car in rush hour.
You should ensure that the car you choose is within your budget. Also, check whether the car has air conditioning. This is very important in hot weather.
Make sure you reserve the car you want in advance. Some people don't realize they need one until the last minute.
There are many safety features in rental cars. In an emergency, it is a good idea to have a blanket and a first-aid kit.
A collision damage waiver may be an option. It's optional, but this will save you money on insurance.
You can request special requests during your reservation process, or upon arrival, if necessary.
Be sure to pack everything you own and bring your credit and ID cards.
Be alert while driving. Focus on the road and stay focused.
Contact the police immediately if you are involved in an accident.
When you are done using your car, be sure to turn it in. Otherwise you'll be fined.

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