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Do Rental Cars Need Insurance?

People think, they will have an adequate insurance coverage for rental car by having an insurance policy for their own car or credit card extended coverage. This is not true in many cases. If you have an adequate rental car coverage on your own car, insurance policy that will be covers only when your car is in repair shop, but not for the rental car which you rent for traveling.

Most credit card companies offer rental car insurance, that is, when the car is rented by using specific credit card. The most common benefit is the reimbursement on the deductible, that is generally reimbursed only after the claim settlement of your insurance company.

If the credit card company provides the same, you need to check and read the fine print carefully, because some cards will reimburse later only after your paying the bills, some companies will not cover certain types of rental cars, some companies will not cover the rental cars after the period of time.

In many states, it is mandatory for car owners to have auto insurance with liability coverage, because, this will help you when you hit any car and damages others’ property. Also you can add the collision coverage, this will help you in fixing the car when you hit others’ or others hit yours. The comprehensive coverage will pay for the damages other than collision for example, if your car is stolen or ruined in flood etc. You may want the rental car insurance, if your own car does not have collision and comprehensive coverages and have higher deductibles and also you don’t want to take any expensive rental car.

When you don’t have your own car and auto insurance, you need to buy rental insurance which should be depends upon your states law requirements. Most of the car rental companies offer coverages includes damage to personal properties, personal injury and even death of the driver and passengers. Sometimes they will also provide additional coverages for injury and damages of others.

Thus, before buying a rental car insurance, when you don’t have an adequate insurance of your own car with collision and comprehensive coverages or even though you have you need to do some things that include: contact your insurance company and find how much insurance coverage you have on for your own car. Call your credit card company and ask/check out what insurance your card is providing. Then, decide what to consider on the basis of the state requirements.

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