Do I need rental car insurance?

I've had quite a few clients ask me if they need rental car insurance when they are renting a car from a rental car company, so I wanted to touch on this.

​In a lot of cases if you already own a car, your personal car insurance policy can extend to rental cars. This means that you may be able to decline the expensive insurance they offer at the counter and save some money.

 Rental car companies usually offer insurance with a loss damage waiver or a collision damage waiver. This insurance covers you in if your rental car is damaged in a collision, stolen or vandalized. With this waiver, the rental car company won't go after you for repairs and losses.
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This kind of rental car insurance is often, though not always, redundant if you have certain coverage on your personal insurance policy. You should check your personal auto policy. If you're like most people, you may already be covered with your regular auto policy. 

Types of Coverage

1.) Liability Insurance:
Your current auto policy has liability coverage and is required by state law. It helps pay others' medical costs and property damage when you're at fault in a crash. The liability coverage carries over when you're driving a rental car. 

Estimated Liability Insurance Cost with Rental Car Company:
"Supplemental Liability Insurance" = $16 - $20 / Day

2.) Comprehensive and Collision Coverage: 
This coverage also typically carries over to your rental car.  Comprehensive coverage your car against non-driving-related claims like theft, fire, or vandalism. Collision coverage helps pay for damage to your car from a crash, whatever the cause may be. If you have comprehensive and collision coverage you might consider declining the rental company's loss damage waiver.

Comprehensive and Collision Cost with Rental Car Company
"Loss Damage Waiver" or "Collision Damage Waiver" = $20 - $25 / Day

3.) Medical Payments to Others Coverage: 
This is coverage that pays the medical expenses for you and your passengers in a car accident where you're at fault. This is an optional coverage (not required in the state of Nebraska), but all of Evoke Insurance Clients have this coverage.

Medical Payments to Others Cost with Rental Car Company
"Personal Accident Insurance" = $6 - $12 / Day

4.) Personal Effects Coverage:
Sometimes abbreviated, PEC, this covers you if any of your personal items are stolen or damaged from your rental car. This is usually included with, the above mentioned, Personal Accident Insurance. Most likely, you do not have this coverage on your personal auto policy. You do, however, most likely have coverage for this on your homeowner's or renter's insurance policy.

When Should I Get Rental Car Insurance?

1. You don't have car insurance, or what you have is bare bones minimum.
2. You're traveling for business.
3. You're driving a rental car abroad.
4. You're worried about a rental car accident affecting your personal insurance.
5. You want peace of mind at any cost.

Always feel free to reach out to us here, at Evoke Insurance Solutions, and we'll be happy to answer your insurance questions or address concerns you may have. ​