Should I Get Rental Car Insurance? Most rental car companies offer a minimal suite of rental car insurance coverage. You should find out what they offer and what is excluded before you arrive. If you already have car insurance or personal property insurance, you may not need to purchase any additional coverage. But your personal insurance may not cover all aspects of a loss. Many credit cards will cover rental car damages. Similarly, some homeowners insurance policies will cover personal property.
It’s always best to err on the side of caution and splurge for insurance coverage. For example, even though your personal insurance or credit card may cover loss due to physical damage, what about the rental agencies’ loss of income? What about medical fees? Liability coverage? Comprehensive coverage? You will want to talk to your insurance agent to make sure all these scenarios are covered before driving a new rental car.
Should I Get Rental Car Insurance for Business?
If you are driving a rental car for business, you may want to with your company about purchasing additional insurance. In many cases, the rental company may charge a deposit on your company debit card. This is refundable if you return the car in good condition. You may also need insurance to rent a moving truck. Your personal auto insurance coverage most likely does not cover moving trucks. You should purchase rental truck insurance to protect yourself in case of an accident.
An Accident cost can be very high if you do not purchase it. It is essential to understand the coverage before buying the insurance. Getting the coverage may increase your rental bill or require you to sign forms acknowledging your financial responsibility in case of an accident. However, you can always decline to purchase the insurance if you already have auto insurance. Again make sure you are covered for all loss situations, especially loss of income to the rental agency if their car is out of commission while being repaired.
Should I Get Rental Car Insurance for Business? Below is an example of a complaint on the MO department of Insurance site.
The other insurance company won’t pay for a rental car on my liability claim. Don’t they have to?
Not in all situations. If you have no other vehicle available, the insurer should cover the cost of a rental as part of your damages from the accident at least until they determine the loss on your car. No insurance statutes exist on this issue. More information on this can be found at https://insurance.mo.gov/consumers/faq/autofaqs.php.
If you purchase rental car insurance, make sure you have collision and loss damage waiver coverage. These policies will help protect the rental company’s assets and save you the trouble of filing a claim. However, you must remember that these plans will not cover the expenses of stolen property and liability. However, you can purchase additional coverage if necessary. You should also contact the rental company to see if they offer additional coverage.
Boat Insurance is the same way. In my opinion, to protect your assets, you should get additional coverage.
You should also consider whether or not to purchase a loss damage waiver if you are renting a car for business purposes. By buying a loss damage waiver, you waive your responsibility to pay for damages to your rental vehicle due to accident, environmental damage, or theft. While the collision damage waiver covers collision damage, it does not cover theft. Loss damage waiver is similar to collision and comprehensive policies for rental cars, but most likely does not require a deductible.
Rental car insurance may be an unnecessary extra, but it can protect you in the event of an accident. The minimum coverage provided by rental car companies is generally sufficient to cover most renters, but if you plan to drive long distances or drive at night, it would be wise to add additional insurance coverage.
If you are in an accident while renting a vehicle, it would be a good idea to have personal accident insurance to cover medical expenses. This type of insurance will often include a death benefit. However, you need to consider the price of this type of coverage.
Hopefully, we gave you the information to be aware of and to ask when deciding whether or not to purchase rental car insurance. Make sure to check with an insurance agent or attorney if you are uncertain.
Should I Get Rental Car Insurance for Business? Conclusion
Whether or not to get rental car insurance is a personal decision. If you feel comfortable taking on the risk, you may forego the insurance. However, if you would rather err on the side of caution, then getting rental car insurance is the way to go. No one knows what the future holds, so it’s important to be prepared for anything.