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What You Should Know About Rental Car Insurance

by Amy Walters

What You Should Know About Rental Car Insurance

Do you really need rental car insurance? It depends on a number of factors that warrant consideration before you put out the money for this type of insurance. Read on to learn more about those factors.

1. Collision Coverage on Personal Policy or through Credit Card Company

If you have collision coverage on your auto insurance policy, you may be covered if you experience an accident with a rental car. If this is the case, you may not want to obtain separate rental car insurance. Of course, if you do not own a vehicle and have no personal insurance, you will need rental car insurance to be covered should an accident occur.

Some credit card companies may also offer insurance for rentals, which will apply to your rental vehicle if you pay for it through your credit card. This type of insurance is sometimes offered to only the best members, so you should check this out with your credit card company first. In some cases, the insurance provided by a credit card company will only apply to damages that are not covered by other types of insurance you may have, another thing you will want to check out.

2. Inspect Company Travel Policy

If you are using a rental car for business purposes, you should check your company’s travel policy to see if there is coverage. Full coverage will usually be provided.

3. How much will rental car be used?

You will want good coverage if you will be using a rental car a great deal. It is unfortunate but true that the more you use your vehicle, the greater your chances of getting involved in an accident. You may be the best driver on the road, but you cannot control the recklessness of other drivers around you. If you intend to use a rental car quite often, you may want to invest in rental car insurance just to be on the safe side.

4. How about a Rental Car Company’s Loss of Use?

If you have collision and comprehensive on your personal auto policy, there is one thing that may not be covered. In certain parts of the country, an auto insurance policy will not cover loss of use of a rental vehicle, which is the loss by the rental car company of rental fees while the car is out of commission and being repaired. This fee will be your responsibility unless you have rental car insurance.

5. Higher premiums on your own insurance

Relying on your own auto insurance to cover your use of a rental vehicle can mean paying higher premiums if you get into an accident while using that vehicle. You will be seen as more of a risk to insure due to the accident, and it may cost you in higher premiums for years.

You need to consider all of these points to make an informed decision regarding rental car insurance. By having proper coverage, you can rest easy when using a rental.

Author Bio
Charlotte Fletcher writes for, a comparison website for auto insurance in the UK.

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