Is Rental Car Insurance Really Necessary?

People rent vehicles for many reasons – summer getaways, engine repairs and body work after an accident can all lead to the need for a rental car. When renting a vehicle, it is important to consider your insurance needs, and to determine whether you are already covered or will benefit from the optional coverage offered by your rental car agency.

Important Questions on Rental Car Coverage

When considering whether you should purchase the insurance offered by your rental car agency, consider the following:

• Do I need this coverage? In many cases, your personal car insurance extends to protect you even while you are driving a rental car. If you carry full coverage on your personal car, you may be adequately covered while driving a rental. Speak to your agent about your coverage to be sure that you are protected.

• What does the offered policy even cover? USA rental car agencies are required to offer the state minimum coverage, however they may choose to offer enhanced protection. If your rental agency provides only the state minimum insurance, you are not getting very much protection when you choose the optional coverage. In fact, many of these policies will not cover medical expenses from a severe accident.

• Do I have other options? If your personal car insurance does not protect you while operating a rental car, and the insurance provided by the rental agency is minimal, you may have other options for coverage. Some credit card companies, and travel companies like AAA, offer insurance for your rental. Ask your credit card company if this is an option well in advance of signing your rental agreement, however, as these programs may have limited scope and protection offerings.

What’s the final answer?

If you carry car insurance offered by any of the major insurance carriers, you probably have coverage while driving a rental car in the USA. If that is the case, adding the optional rental car coverage is nothing but a waste of money.

But, how can you truly be sure you that have coverage? In all reality, the only way to be sure if you are covered or should add the option, is to speak to your agent. Our Indiana insurance agents are happy to discuss your coverage requirements and offer advice on the benefits and limitations of a rental car insurance plan.