Do You Need Rental Car Insurance?

When you're renting a car, the agency will have plenty of insurance policies they'd like you to buy. Each policy might be beneficial under the right circumstances, so you should review each plan's provisions, limitations, and exclusions before buying one. Ask at the rental office for the detailed information on each policy, since their Web sites usually just carry a summary.

If you have insurance on your own car, you might not need to buy rental car insurance. Generally, when you rent a car, your own policy still covers you. The comprehensive and collision amounts and deductibles remain the same, as well. If you don't have comprehensive and collision coverage, click on "How Much Car Insurance Should You Buy?" for a list of coverage types and their definitions.

Some credit cards also provide additional auto insurance, so check with your credit card company for specifics. Some cards cover rentals from a particularly agency only. Some limit the number of days for which you're covered. Some cover only particular types of cars. Some cards only reimburse the deductible for your own insurance policy. Others provide collision and comprehensive coverage for yourself but don't cover personal injury or property damage to others.

Rental car agencies usually offer two-part coverage:

1) Supplemental liability policies that protect against claims from others, and

2) Loss Damage Waivers that cover the rental car (technically, LDW is not insurance; it's an agreement that the company won't hold the consumer liable for any damage to the vehicle).

Be aware of which charges you could be responsible for and whether your own insurance covers all or part of them before renting a vehicle. If you want to buy a further rental policy, look for one that covers areas that your own policy doesn't.

If you suffer a loss not covered by your own policy, check your other insurance policies. Personal property stolen from a rental car may be covered under your homeowner's or renter's insurance. Injuries not covered by your car insurance policy may be covered by your health insurance. Always check with your own insurance company to be sure you understand what's covered and what isn't.

For quick quotes and the easiest way to buy car insurance online or by telephone, there are many ways to find them. Online quote comparison sites pit insurers side by side according to your needs after filling out an application with your personal and automobile details. Look to them today for savings.