Whether you're a regular business traveler or you only rent a vacation vehicle once a year, the right level of rental car insurance is important. With insufficient coverage, you could risk paying dearly if an accident or theft occurs. Take out too much insurance and you risk overpaying for coverage you really don't need.
If you have automobile insurance for a vehicle you own, this is the first place to start deciding on how much more you need to buy. It's possible your policy already provides a decent level of coverage against theft, an accident or other mishap with your rented vehicle. The liability insurance you have on your own vehicle may also cover any damage you cause to other vehicles or people while driving your rental car.
If you discover your regular car insurance does in fact cover any rental vehicles you drive, check any limitations on that coverage. If the car you own is older or of significantly less value than the car you're renting, your own insurance may not provide sufficient coverage. You could opt to buy additional insurance or rent a slightly older or less valuable vehicle if this is the case.
Credit cards you carry may be a second potential source of rental car insurance you already have in place. Many credit car companies offer rental car insurance if you pay for the rental with their card. This may be the case whether or not you own a car and have your own car insurance. Oftentimes, the combination of credit card rental insurance with your own auto policy's coverage is all you need to feel confident about rental vehicle coverage.
Rental car companies offer one of the most convenient options for purchasing rental car coverage. If you already know what (if any) insurance you have in place, you can quickly decide on the types of coverage you want on the car you drive. This may vary depending on your destination, how much you'll be driving and where you'll be driving.
As an example, if you're driving in a foreign country on the opposite side of the road in an urban setting, you may feel you need a greater level of coverage against accidents. If you'll be traveling a lot with most of your personal belongings in the vehicle, you might want to invest in extra insurance against damage or theft of your personal property.
Some homeowner's policies will provide adequate coverage for your personal belongings, so check this possibility before you invest in extra rental insurance. It's also a good idea to consider whether or not you have health insurance before you invest in coverage of personal injuries you may incur in a rental vehicle. If you have no health insurance, rental car insurance could be a wise investment.
A Collision Damage Waiver or CDW is another coverage option to consider when renting a car. This guarantees the rental agency will not charge you anything if the car you rent is damaged or even totaled. This includes the cost of repairing the vehicle, plus the time it takes for the car to be repaired. By contrast, your regular car insurance may only cover damages, but not the fees typically charged by a rental company for the days a vehicle is out of service for repairs.