19 Apr 2018
Do You Really Need Rental Car Insurance?

Rental car insurance sounds like a good idea, but is it really necessary?

When it comes time to rent a car, the rental agency will ask you if you would like to purchase rental car insurance.  While this sounds like a good idea, this coverage might not actually be necessary.  To help you determine whether or not you need rental insurance, you should understand what rental car insurance is and find out what your personal policy already covers.  Here’s what you need to know.

Rental Car Insurance

Generally, car rental companies will offer four insurance options:

  1. Collision Damage Waiver – This type of insurance will ensure that you are not held financially liable if your rental car is damaged or stolen.
  2. Supplemental Liability Protection – If you get into an accident, this type of insurance will ensure that you are covered for any damages or injuries you might accidentally cause to another party.
  3. Personal Accident Coverage – If you get into an accident, this type of insurance will cover any injuries or fatalities to you or your passengers.
  4. Personal Effects Coverage – This type of insurance will reimburse you for any personal items that are stolen out of your rental car.

What does my personal auto policy cover?

It’s likely that your existing auto policy already offers some coverage that will apply for rental cars.  For instance, most standard auto policies will offer liability coverage.  Some policies might even offer collision, comprehensive, and medical payments coverage for rentals.  However, policies differ from driver to driver, so it’s important to understand the specifics of your coverage.  If your policy does not offer all the coverages that you need, you should seriously consider purchasing insurance through the rental car company.

Ultimately, whether or not you need rental car insurance depends on your personal auto coverage.  Do you have more concerns about your car insurance?  Don’t hesitate to contact us at Patterson & Associates in Richardson, Texas.  Our dedicated team is ready to assist you with all your insurance needs.