Rental car insurance at the counter vs. your insurance
Here are the most common accidents/claims and how they’re covered.
Rental car is damaged or stolen
Your insurance:
Comprehensive and collision
Pays for damages from accidents, glass damage, and events that are out of your control (theft, falling tree limbs, fire, hail, and more). These coverages are optional, so make sure you have them before skipping rental insurance. Remember, if you don’t have these on your personal policy, they won’t apply to your rental. Also, if you have damages, you’ll have to pay your deductible.
See more on car insurance deductibles, comprehensive, or collision.
Rental car company insurance:
Loss damage waiver (also called collision damage waiver)
Covers the exact same incidents, but may not cover you while speeding, driving on unpaved roads, or while intoxicated. You’d only want to consider adding this if you don’t have comprehensive and collision on your policy…or if you have a high deductible you want to avoid.
You hit someone else and cause damages + injuries
Your insurance:
Bodily injury & property damage liability
If you’re at fault, this pays for damages/injuries you cause. This includes hitting another car, injuring another driver, their passengers, or pedestrians, or damaging someone else’s property (mailbox, house, etc.). This is automatically included in your auto insurance policy, but you can choose a limit, which is simply the max amount your insurer will pay.
Rental car company insurance:
Supplemental liability
Covers the same instances, but you could temporarily select a higher amount just while you’re driving the rental. You’d only want this if you have a low liability limit or want the extra coverage.
Your stuff is stolen from the rental
Your insurance:
Personal belongings (renters/homeowners insurance)
Could be a cell phone, clothes, computers, etc. These items are actually covered by your renters or homeowners insurance and not auto. This is automatically included in[…]
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Continue reading this Progressive Insurance article.