If you are involved in an accident when driving a rental car and don’t have renter’s car insurance, you will be responsible for paying a high price to repair and return the vehicle. Renter’s auto insurance, also known as rental car insurance, is designed to protect you against theft and damages when driving a rental car, and can be a valuable asset to you if you are driving a rental in a new city or town.
Many car insurance companies, and even some credit card companies, offer renter’s insurance at attractive rates, and this type of insurance can help to cover a number of costs related to your accident.
Renter’s insurance coverage varies by provider, but most rental car companies, auto insurance providers and credit card companies offer a number of different types of insurance options. Some of the most common types of renter’s insurance options available include:
Collision Damage Waiver (CDW): This type of insurance coverage ensures that the car rental company will be solely responsible for paying for any collision damage to the rental car after the deductible has been reached. Most car rental companies offer CDW when you sign the rental car agreement, so if you decline to take it, you will be fully responsible for all damages to the vehicle. Some auto insurance providers already offer CDW coverage benefits to their customers.
Personal Accident Insurance (PAI): Insurance providers and car rental companies will cover some of your medical bills when you are involved in an accident and have Personal Accident Insurance (PAI). You can protect yourself against the high cost of medical care for a nominal fee. This type of insurance also covers the costs associated with the death of a passenger or injuries of a passenger during a car accident.
Loss Damage Waiver (LDW): This type of renter’s insurance coverage is similar to CDW, and will cover several types of costs associated with the accident. The type of coverage varies by insurance provider or the car rental agency.
Supplemental Liability Insurance (SLI): Even when your auto insurance provider offers some rental car insurance coverage, you can protect yourself with some extra coverage. You can purchase SLI to cover costs above and beyond what your current insurance plan covers.
Personal Effects Coverage: If your personal belongings are stolen from the rental car and you carry Personal Effects Coverage, you will be reimbursed for the value of your belongings.
Renter’s auto insurance can be a valuable addition to your auto insurance coverage, especially if you plan on renting a vehicle for an extended vacation or when traveling to a new area. Consider your options in renter’s car insurance so that you can protect yourself against theft, damages and other expenses related to an accident.