Car Insurance When Renting a Vehicle

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Vehicle Insurance
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Car Insurance When Renting a Vehicle
When you rent a vehicle you will be surprised by
the amount of taxesand fees that you will pay on
top of the rental cost. As you are checking out,
you will be asked whether or not you want an
insurance policyon your rental vehicle.This
question may throw you if you are not prepared
for it, because the rental agency agents are
quite good at making it sound like you need the
coverage to save yourself thousands of dollars in
the event of a crash. Do you need this coverage,
or is it simply an additional cost to put more
money in the rental agencys pocket? What Is
CoveredAnswering this question begins with
understanding what is covered by the policy. This
will vary from Rental Company to Rental Company,
but there are usually some similarities to these
insurance policies.
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There are four basic types of coverage loss
damage waiver, liability insurance, personal
accident insurance, and personal effects
coverage. The rental companys insurance
will cover the damage to the vehicle. Some
exclusion apply to the waiver, such as accidents
caused by off-roading, drunk driving, or
speeding. This waiver will also usually protect
you from being charged for the loss of use that
the rental company suffers while making repairs
to the vehicle.
Loss damage waiver covers your liability for
damage to the vehicle if it is in a collision.
This is not actually an insurance product,
because it does not pay for the damage. Instead,
it takes the liability for the damage off of you,
as the renter, even if you caused the crash.
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• Rental cars automatically come with some
  liability vehicle insurance, because the state
  law will require it. However, the protection is
  minimal. Because most drivers need more liability
  coverage than what comes with the vehicle, rental
  agencies offer liability insurance.
• If you or your passengers are injured in a crash
  while driving the vehicle, your medical care
  could be covered under personal accident
  insurance. This is fairly affordable to add to
  your policy. However, you likely do not need it
  if you have health insurance.
• Personal effects coverage, the final type of
  coverage, will pay for any theft of the things
  you are transporting in the rental car. Keep in
  mind that your homeowner's or renters insurance
  policy probably already covers the theft of
  personal belongings, even while travelling.

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