Does Personal Car Insurance Cover Rental Cars?
Many people who rent cars already have car insurance. You might be away on a trip, have your car in for repairs, or need a bigger car for a special occasion. Your car insurance will often cover you, but you shouldn't assume that it will.
What Happens if Your Personal Car Insurance Doesn't Cover a Rental Car?
If your car insurance doesn't cover a rental car, it's almost like driving without insurance. It's almost because the rental car company usually needs to provide the minimum liability coverage by law even if you don't purchase their insurance product.
However, if you get in an accident or your car is stolen, you could be forced to pay the cost of the rental car. You also won't have any protection if the other driver sues you.
Does Personal Car Insurance Cover Rental Cars?
Personal car insurance can cover rental cars. It depends on the policy that you have. Most policies offer some kind of rental car coverage, but you need to check what the limits are.
Some policies limit you to a certain number of rental days per year. Others don't cover certain types of vehicles or cars that are worth more than a certain amount.
If you rent a car that your insurance policy covers, you're automatically covered. If you rent a car that's excluded under your policy because you didn't check before you rented the car, you may only find out you're not covered when you try to claim for an accident.
Should You Use the Rental Car Company Insurance?
If you've checked that your insurance covers you, there's usually no need to buy the rental car company coverage. You'd just be buying coverage you already have.
If your car insurance doesn't cover you or limits your protection for rental cars, you should consider the rental car company coverage. This is usually a good option for a short rental but may not be the best option for longer rentals or if you rent cars frequently.
The other option is to find a better car insurance policy. Remember that what each insurance policy covers in terms of renting cars varies. If you rent cars a lot or need a car for an extended period, upgrading your car insurance will usually be cheaper than repeatedly paying for the rental car company's coverage.
To learn more about your car insurance options, contact a local personal insurance services agency today.
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