Do you really need to buy Rental Car Insurance? Decide Before You Ride!

April 23, 2014

The best time to make the decision about whether you will need extra Rental Car Insurance is before you're standing at the car rental counter.

Things To Consider When Renting A Car

It's not uncommon for rental car agencies to offer you the opportunity to purchase additional auto coverage, but do you need them?

What Is Usually Offered?

  • Collision Damage Waiver (CDW) or Loss Damage Waiver (LDW), relieves you of financial responsibility if your rental car is damaged or stolen.
  • Liability Insurance provides excess liability coverage of up to $1 million for the time you rent a car. Rental companies are required by law to provide the minimum level of liability insurance required by your state. Generally, this does not offer enough protection in a serious accident.
  • Personal Accident Insurance (PAI) covers you and all passengers in your vehicle for any medical expenses.
  • Personal Effects Coverage (PEC) provides coverage for theft or damage to personal items inside the rental car.

To Buy Or Not To Buy Rental Car Insurance?

Before you rent a car, check with us on how your auto or home/renters policy might extend coverage. Sometimes the same coverage and deductible that you carry on your auto policy will apply but check with us to be sure. Some of our companies extend coverage automatically while with others we must endorse the policy to include this extension of coverage. We receive a lot of calls on this subject and it's a good thing to know. Give us a call and we can help you determine what is best.

Game Changers

In certain circumstances, the decision to purchase Rental Car Insurance requires more research. Here are a few examples in which it is likely you will need to purchase additional coverage:

  • Renting a vehicle that is not classified as a passenger car (such as a moving truck or 15 passenger van).
  • Renting a car outside of the United States.
  • Renting a car for business use.

Be a savvy traveler; spend some time preparing before you reserve that rental car. Find out what the rental company has to offer and give us a call to research your own auto and home/renters policies.

Call our agency or visit us at for more information today!