Car Rental Insurance: Everything You Need to Know
It has been estimated that car rental companies make 10 percent of their revenue from add-ons of items such as rental insurance. Between July 2009 and October 2014 in just two states, one rental company added more than $332 million in revenues which were purchased by 2.6 million customers. This certainly explains the amount of pressure that is often applied at the rental counter to purchase additional and often redundant insurance.
Discovering the generally exorbitant amount of money that car rental agencies charge for car rental insurance makes it worthwhile to determine if you really need to purchase it. So the question is, do you need to buy it or are you covered if you already have an automobile insurance policy?
The typical options for car rental insurance include the following:
- Collision or Loss Damage Waiver covers damage to the rental car. If you have collision and comprehensive coverage on your personal automobile policy, it will apply to the rental car under most circumstances. Of course, the coverage limits and deductibles you’ve chosen for that policy will apply to the rental car also. Beware that if the rental is for commercial or business use, your personal policy may not cover the usage of the rented auto.
- Liability Insurance covers damage or injury to other cars, people or property. If you have a personal automobile policy it will extend to the rental car usage. If you have low coverage limits, it may be a good idea to speak with your agent before renting to make sure you have adequate coverage, both for the rental purpose and for your own automobile.
- Personal effects coverage protects you if items that belong to you are stolen from a rental car. If you have a homeowners or renters insurance policy it will cover your possessions. In order to make a claim, you would need to file a police report, and of course the deductible would apply.
- Personal Accident Insurance provides for medical expenses an accident to include ambulance, medical care and death benefits for you and your passengers. If you have health insurance, the policy would generally cover ambulance and medical care. Death benefits would be covered if you have a life insurance policy. If you have personal injury protection through your auto policy, you would similarly be covered.
If you don’t have a personal automobile policy, you will need to secure coverage for the rental car in order to protect yourself. A trusted insurance agent can advise you on supplemental policies which may be available options. Always be sure to check which policy coverages extend to your rental car.
Additionally, some credit card companies may provide additional coverage if you use their card to pay for the rental car. To see what additional rental car coverage is provided, you can call the number on the back of the back of the credit card, but remember this is only a supplement to your own automobile policy to help you with deductibles, insurance gaps or excessive damages.
It’s important to be prepared when you’re renting and we can assist you in evaluating whether you’ll need rental car insurance. For additional help with your car insurance and rental car policy needs, contact Pettineo Insurance Agency today at (954) 493-9424 or visit www.pettineo.com for a free quote.
Pettineo Insurance Agency Inc. provides car insurance and car rental insurance coverage in Fort Lauderdale, Lauderdale-By-The-Sea, North Lauderdale, Pompano Beach, Oakland Park, Boca Raton, Deerfield Beach, Hollywood, Sunrise, Coral Springs, Pembroke Pines, Sunrise, Tamarac, Plantation, Lighthouse Point and all of Florida. As an independent agent we represent many top rated companies in both the personal and commercial lines. We place your policy with the company offering the best coverage at a reasonable price. We offer a complete line of personal, commercial, life and health insurance products, designed exclusively for your insurance needs. Serving South Florida for almost 30 years, Pettineo Insurance offers the highly personalized service and stability that you should expect from your insurance agent.
