6 Things You Should Know About Rental Car Insurance

woman looking at rental car in laptop screen that says car rentals

When you rent a car, one of the first things the desk attendant will ask is if you want to get insurance for your rental. The answer is typically yes without giving a second thought because of course, you need insurance, right? Well, maybe you need to think twice about it because you could be spending more money than you need to. 

1. What Are Your Rental Coverage Insurance Options?

The majority of rental companies offer these coverage options:

  • Liability coverage. It provides protection if you get into an accident, and you’re at fault.
  • Personal accident insurance. Compensates you for injuries caused by an accident.
  • Personal effects coverage. Covers items stolen or lost from the rental car.
  • Collision damage waiver. If your rental gets stolen or damaged, it covers towing and loss of use expenses.

It may seem that you need all of it, but it could not be the case. Check your current coverage, maybe you only require liability insurance for your rental, for example.

2. Make Sure to Check Your Current Coverage

Read the fine print on your policy. If you have upper-tier coverage, most likely, you won’t need to get all the add ons offered by the rental car company. Make sure you won’t spend more than needed before you ask yourself, “should I insure my rental car?”  

man putting suitcase in car trunk rental car insurance

3. Got Traveler’s Insurance? Use It! 

Nowadays, it is very common for travel policies to include insurance for hire cars, and they’re usually more inexpensive than what they offer you at the rental car counter. So read yours carefully.

4. How Much Does Rental Car Insurance Cost?

It depends on the company, but rental insurance coverage can get expensive, especially for long-term rentals. 

Average rental insurance costs

  • Supplemental liability insurance (SLI): $8 to $12 per day.
  • Loss damage waiver (LDW) or collision damage waiver (CDW): $20 to $30 per day. 
  • Personal accident insurance: $3 per day.
  • Personal effects coverage: $2 per day.

5. What About Your Credit Card Benefits? 

Take a closer look at your credit card benefits. A lot of cards provide rental car insurance if you use them to pay for it. You could even have towing and theft covered without knowing it, so make sure to call them or read your contract carefully before renting a car. 

6. When Should You Insure Your Rental Car?

There are instances when you should say yes to the rental car insurance offered by the counter attendant. If you have a bare-bones policy that doesn’t include comprehensive and collision coverage, don’t have health insurance, don’t own a car, or don’t have car insurance yourself, you should get the coverage offered by the rental car company. 

Still not sure if you can get covered? Cost-U-Less can help! Start your free car insurance quote online, give us a call, or visit one of our locations near you and don’t wait any longer to save on car insurance.

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