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Best Options For Rental Car Insurance

Collision damage waiver, supplemental liability insurance, personal accident insurance, and personal effects coverage fall under the bracket of rental car insurance. Read on to learn all about how you can feel financially secure about your rental car.
rental car insurance
Best Options For Rental Car Insurance
If you have rented a car, make sure you buy the company’s rental car insurance. However, if you already have vehicle insurance, you are likely covered up to your policy’s limits.
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For many drivers, rental car insurance is a must, while some consider it an unnecessary expense. Reports show that in 2019, about 44.5 million cars were rented in the US, and this number was estimated to rise to 46.8 million in 2024. 

When renting a car, it is vital to be careful about the insurance and policies that come with it. If you’ve already rented a car, make sure you buy the company’s rental car insurance. However, if you have auto insurance, you’ve covered up to your policy’s limits.

Before renting a car, go through your car insurance policy coverage. Sometimes, the coverage you have on your car might extend to a rental car. Purchasing rental car insurance coverage might duplicate what you already paid for. If you plan on renting a car, here is what you need to know.

What is Rental Car Insurance?

When you rent a car, you can add extra coverage from the car rental group. This comes with a fee that is added to your everyday rate. Based on your insurance and the coverage given by your credit card company, you might not need extra coverage from the rental company. Various travel reward cards come with particular rental car insurance that allows you to skip the rental company’s insurance.

A comparison of car insurance quotes can help you get the best deal for your budget. Using Beem can help you make the right choice.

Types of Rental Car Insurance Coverage

There are different kinds of rental car insurance. Let’s explore them in some detail.

1. Collision damage waiver

You need to know about collision damage waivers for your rental car insurance coverage. With this waiver, you don’t have to pay for repairs or replacements if the rented car is damaged or stolen, although waivers typically include deductibles. Experts recommend buying this type of rental car insurance as it offers better protection than the deductible in your regular car insurance policy, which may cover rental cars but with added costs.

2. Supplemental liability insurance

This covers the damage caused to others’ property and medical costs for injuries caused to other people during an accident you are responsible for in the US. You need a minimum amount of liability insurance on car insurance policies, but that might already be covered through your auto insurance.

3. Personal accident insurance

Personal accident coverage involves medical, ambulance, and death benefits for you and your passengers during an accident. If you’re traveling out of the country, where US health insurance might not be accepted, you need to carry travel insurance with emergency medical benefits and emergency transportation benefits. These benefits cover your medical bills during an emergency overseas, regardless of whether it was a car accident.

4. Personal effects coverage

It covers the robbery of possessions from the rental car, with a limit of up to a dollar. If you have travel insurance combined with baggage loss or benefits, you can be protected if your baggage is misplaced, smashed, or stolen while traveling. If you travel often, an annual travel insurance plan will be the best option to protect your rental car, baggage, and finances.

Do You Need Rental Car Insurance?

It is not necessary to have rental car insurance by law as your auto insurance can cover it; however, there is minimum coverage for vehicles in rental centers. If you meet with an accident in your rental car and don’t have your car insurance, you might end up paying for important purchases. There might be other choices like extra insurance from the rental firm, using a credit card to cover, or through a third party.

How to Get Rental Car Insurance

Renting a car from any reputed company will offer rental insurance coverage. You can get a car insurance policy online by visiting their website or visiting them in person to clarify your doubts. The covers can be bought from rental firms based on how many days you rent the car. The insurance company usually provides coverage.

Tips for Saving Money on Rental Car Insurance

Read these tips before you rent a car and save money. Start looking for and booking your car as soon as possible, especially during the travel season. Avoid booking at airports as they can be expensive. For primary insurance coverage, use a credit card, take advantage of your Costco or BJs Wholesale memberships, check for online discounts on Autoslash and book there, do your research and look for online deals that come with free on rental cars and before leaving with your rental car check thoroughly, take pictures if you notice dents, scratches or other repairs.

Conclusion

Having a car can be expensive and comes with numerous responsibilities. You need to spend your money on maintenance, service, and fuel, all while the cost of spare parts hikes as the car gets old. This is why some people prefer not to buy a car and choose instead to rent one. especially considering the complications of driving without a license plate.

Renting a car makes things easier. The company provides rental car insurance that covers expenses incurred during an accident. Before you sign up, do your homework, inquire about the policies, check your documents, clarify your doubts, and then proceed. Remember, you can always download and try Beem for guidance in choosing a car insurance option best suited to your needs.

FAQs

Do you need extra insurance when renting a car in the USA?

If you own auto insurance, you might not need rental car insurance, as it will usually cover rental cars, too, if you have the average coverage. If you don’t have a car and don’t need car insurance, you need to take care of the liability coverage offered by the rental company. 

Is budget car rental insurance worth it?

If you’re on a road trip and want to rent a car, there are times when you might have to buy budget car rental insurance. Budget car rental insurance is the cost coverage set by the insurance companies that rent cars. Rental car insurance comes with many plans and ensures the safety of the car during damages.

Does travel insurance cover rental car insurance?

Travel insurance covers policies with rental car insurance. This covers anything that is outside your control and causes damage to your rental vehicle. Most of these policies offer $25,000-$50,000 of rental collision damage coverage. Travel insurance can be considered if your rental vehicle is damaged by theft, fire, windstorm, hail, flood, or collision.

Why do rental car companies ask for insurance?

When you rent a car, it is important to protect it. Rental agencies and firms offer car insurance, which is essential to protecting and safeguarding any damage caused to the car or third-party liability during an accident.

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Author

Picture of Aniket Kulkarni

Aniket Kulkarni

A seasoned Product Manager specializing in car insurance content, Aniket has a passion for simplifying complex insurance concepts. His strategic approach to content development reflects years of experience in the product development industry, coupled with a commitment to providing accurate, reliable information.

Editor

This page is purely informational. Beem does not provide financial, legal or accounting advice. This article has been prepared for informational purposes only. It is not intended to provide financial, legal or accounting advice and should not be relied on for the same. Please consult your own financial, legal and accounting advisors before engaging in any transactions.

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