Insurance for Rental Cars: Protect Yourself When Driving Abroad

Why You Need Rental Car Insurance

When you rent a car, you're taking on the liability for any damages that may occur to the vehicle. This includes damage to the car itself, as well as any injuries or property damage that you may cause to others. While most credit cards offer some level of rental car insurance, it's important to understand the coverage that you have and what it doesn't cover.

According to the Insurance Information Institute, only 39% of Americans purchase rental car insurance when they rent a car. This means that the majority of drivers are driving without adequate protection in the event of an accident.

Types of Rental Car Insurance

There are several different types of rental car insurance that you can purchase, including:

• Collision Damage Waiver (CDW): This coverage protects you from financial responsibility for damage to the rental car, regardless of who is at fault.
• Loss Damage Waiver (LDW): This coverage protects you from financial responsibility for the theft or total loss of the rental car.
• Liability Insurance: This coverage protects you from financial responsibility for injuries or property damage that you cause to others while driving the rental car.
• Personal Accident Insurance: This coverage provides you with medical and disability benefits in the event that you are injured while driving the rental car.
• Personal Effects Coverage: This coverage protects your personal belongings from theft or damage while they are in the rental car.

How to Choose the Right Rental Car Insurance

The type of rental car insurance that you need will depend on your individual circumstances. If you are driving in a foreign country, you may want to purchase additional liability insurance to protect yourself from the high costs of medical care and property damage. If you are renting a luxury car, you may want to purchase additional collision and loss damage waiver coverage to protect yourself from the high cost of repairs.

Tips for Saving Money on Rental Car Insurance

There are several ways to save money on rental car insurance, including:

• Compare quotes from multiple insurance companies.
• Ask about discounts for AAA members, seniors, or military members.
• Use a credit card that offers rental car insurance.
• Purchase a travel insurance policy that includes rental car insurance.

Common Mistakes to Avoid

There are several common mistakes that people make when purchasing rental car insurance, including:

• Not purchasing enough coverage. You should always purchase enough coverage to cover the full value of the rental car and any potential liability that you may face.
• Purchasing unnecessary coverage. If you are already covered for rental car insurance through your credit card or travel insurance policy, you may not need to purchase additional coverage.
• Not reading the policy carefully. Before you purchase rental car insurance, it is important to read the policy carefully to understand what is covered and what is not.

How to Purchase Rental Car Insurance

You can purchase rental car insurance from a variety of sources, including:

• The rental car company. The rental car company will typically offer you a variety of insurance options to choose from.
• Your insurance company. Your insurance company may offer you coverage for rental cars as part of your existing policy.
• A travel insurance company. Travel insurance policies often include coverage for rental cars.
• A credit card company. Many credit cards offer rental car insurance as a benefit to cardholders.

Conclusion

Rental car insurance is an important way to protect yourself from financial liability in the event of an accident. By understanding the different types of coverage available and how to choose the right policy, you can save money and ensure that you are adequately protected.