Insurance for Rental Cars: Protect Yourself at 20% the Cost

Why You Need Insurance for Rental Cars

According to the American Car Rental Association, over 40 million people rent cars each year. While most renters have their own car insurance, it may not cover them when they're driving a rental car. That's because rental car companies have their own insurance policies, which typically have higher deductibles and less coverage than personal car insurance policies.

If you're planning to rent a car, it's important to understand your insurance coverage and purchase additional coverage if necessary. Here are the three main types of insurance that you should consider:

• Collision damage waiver (CDW) covers damage to the rental car, regardless of who is at fault. The average cost of CDW is $15 per day.
• Liability insurance covers damage to other vehicles and property, as well as injuries to other people. The average cost of liability insurance is $10 per day.
• Personal accident insurance covers medical expenses for you and your passengers in the event of an accident. The average cost of personal accident insurance is $5 per day.

How to Get Insurance for Rental Cars

There are three ways to get insurance for rental cars:

1. Through your personal car insurance company. Most personal car insurance policies offer rental car coverage as an add-on. The cost of this coverage will vary depending on your policy and the type of rental car you're driving.
2. Through the rental car company. All rental car companies offer CDW and liability insurance. The cost of this coverage will vary depending on the company and the type of rental car you're driving.
3. Through a third-party insurer. There are a number of companies that offer rental car insurance as a standalone policy. The cost of this coverage will vary depending on the company and the type of coverage you choose.

Which Type of Insurance is Right for You?

The type of insurance that you choose will depend on your personal circumstances and budget. If you have a comprehensive car insurance policy, you may only need to purchase CDW. If you don't have car insurance, you'll need to purchase liability insurance as well.

Here's a table that summarizes the three main types of insurance for rental cars:

How to Save Money on Insurance for Rental Cars

There are a few things you can do to save money on insurance for rental cars:

• Book your rental car in advance. The earlier you book your rental car, the more likely you are to get a good deal on insurance.
• Compare prices from different rental car companies. Not all rental car companies charge the same for insurance. Be sure to compare prices before you book your rental car.
• Ask about discounts. Many rental car companies offer discounts for AAA members, senior citizens, and military members.
• Use a credit card that offers rental car insurance. Some credit cards offer rental car insurance as a perk. Be sure to check with your credit card company to see if your card offers this coverage.

Conclusion

Insurance for rental cars is an important way to protect yourself from financial liability in the event of an accident. By understanding your insurance coverage and purchasing additional coverage if necessary, you can help ensure that you have a safe and enjoyable rental car experience.

Additional Tips

Here are a few additional tips for getting the best insurance for rental cars:

• Be sure to read the terms and conditions of your insurance policy before you purchase it.
• Make sure you understand the deductible and coverage limits of your policy.
• Ask your insurance company about any discounts or benefits that you may be eligible for.
• Keep a copy of your insurance policy in your car at all times.