Whether you’re renting a car for a weekend vacation or you need it while you’re having your vehicle repaired, rental insurance will be an option and it’s up to you to decide if you really need it. For those that are considering the overall cost and might be on a budget, they will usually opt to forego the insurance, but it’s always a good idea to consider your options before declining the option.

The first thing you’ll want to consider is whether or not your personal policy covers your rental car. In most cases if you are driving the rental car for personal use, your personal policy will cover the rental car. But if you are using the car for commercial use like rideshare or deliveries, it may not.

Coverage Options

Although each company may differ, there are typically four options when it comes to coverage for a rental car.

  • Loss-damage waiver: usually covers the rental car if it’s damage or stolen as well as other fees
  • Liability coverage: protection from lawsuits
  • Personal accident insurance: covers medical costs
  • Personal effects coverage: covers property kept inside the rental car

Some Finer Details

Depending on the type of coverage you have with your insurance company, it usually will cover you in the event of property damage or injury when driving a rental. When it comes to comprehensive and collision coverage, they will cover damages to the vehicle itself. If you don’t have either policy, you may want to think about the loss-of-use waiver which will provide you the most protection.

In any case, it’s always a good idea to discuss exactly what your personal policy covers to find out if you need any additional coverage or if your policy is all that you need.

Why Get Rental Insurance?

A good reason to think about purchasing rental insurance is if you don’t have a personal policy. You will need at least liability coverage in order to take the rental car off the lot, so if you’re in this position, you will need to purchase rental insurance. This is the only situation where you actually need to secure rental insurance from the rental agency.

That doesn’t mean that it’s not a good idea to secure rental car insurance if you have a personal policy. It can be a great way to provide some extra protection to the vehicle if your policy doesn’t have comprehensive and collision coverage or you don’t want to risk paying a high deductible. Another reason rental coverage might be a good idea is if you are driving out of state, your policy may not cover you.

Reach Out Today!

Some think rental car insurance is extra money that’s not necessary, and in some cases they are right. But in certain situations, it might save you thousands in the long run, so it’s always a good idea to confirm with your policy holder either way. If you have questions about any insurance needs, feel free to reach out to Willoughby Insurance in Buffalo, NY today!