Do You Need Rental Car Insurance?

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We spend a lot of time talking about home insurance (what you have covered, the extra costs, etc.) but what about other types of insurance? This month on the Equifax Personal Finance Blog insurance blogger Linda Rey has been focusing on car insurance.

She says one of the most commone questions she's asked is about whether or not consumers need rental car insurance.

So with fall fast approaching and your last chance at a quick, warm vacation slipping away, it's time to start planning for the holiday trips to the inlaws and beyond. If you're going to be using a rental car, this article holds the key to an important question: “Does my auto insurance policy cover a rental car?

The short answer:

Your current auto insurance policy will extend to a rental car only for the coverage offered on the plan. If you have liability only, then you will have liability only on the rental car. You will not be covered for physical damage, and you might want to consider buying the insurance the rental company offers you.

If you carry full coverage on your policy, your rental car will also have liability and physical damage coverage. However, you will be subject to the deductible you carry on your existing auto insurance policy.

The long answer:

This entry hasn't been re-blogged:

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John Thomas
E3 Green HOMES - Boulder, CO
EcoBroker, MSEE, MBA

Most of the time I op not to accept the additional insurance on rental cars. I think it is a bit of a scam to try to convince people how they need to take the extra coverage.

Sep 30, 2010 08:35 AM #1
Jeff Craig
Allen Tate Realtors - Greensboro, NC
Greensboro/Jamestown/Guilford: Realtor/CSP/CNRS

I agree with John.  I never accept it.  Also, if you put the rental on AmEx Gold, you have additional coverage.

Sep 30, 2010 08:47 AM #2
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