We have all had the awkward conversation with the agent at the rental car company. The conversation that takes place as they deftly slide the contract across the counter pen in hand. More often than not, they casually attempt to convince you to purchase insurance for your vehicle. Have you ever wondered what personal accident insurance is? What about collision damage?
Should you buy any of it?
The short answer is no. Like all salespeople, the salesperson is charismatic. Though they may try to convince you otherwise, the various insurance coverages they offer is optional. If you make the mistake of getting all of them, there could be an additional $30 added to your bill every day.
Both you and the vehicle should be protected, but there is no need to pay extra for insurance you already have.
The Collision Damage Waiver
With the CDW or LDW (loss damage waiver), you don’t have to pay if the vehicle is stolen or damaged. It’s a good idea to buy this form of insurance for your rental car for two reasons.
First, your personal auto insurance policy might contain collision coverage for any vehicle you rent, but it probably includes a deductible. Also, it may not cover the entirety of the charges from the rental car company like the loss of use which are costs for the revenue the company is losing while their vehicle is being repaired.
Second, there may be free collision damage protection provided by your credit card. But this form of insurance is secondary. This means any claims will first be submitted to the company that provides your auto insurance
The most economical way to guarantee sufficient protection for your rental car in the event of theft or a collision is with a
third-party that provides rental car insurance.
Supplemental Liability Insurance
Damages to the property of others is typically covered by
liability insurance. This form of coverage also pays for the medical expenses of others injured in an accident for which you are legally responsible.
Domestically, all states mandate a minimum amount of liability insurance on auto insurance policies. As a result, liability coverage may already be provided via your personal car insurance.
If you have concerns that the liability insurance provide through your personal auto insurance policy is too low, you can further protect yourself by purchasing umbrella liability insurance. According to
The Institutes Risk & Insurance Knowledge Group, this type of insurance is an inexpensive policy that can be added to your homeowners, renters or auto insurance that will provide extra coverage when you are driving your rental or personal car.
Personal Accident Insurance
Liability insurance protects the property of others against damages and injuries sustained in an accident. Personal accident coverage contains ambulance, medical and death benefits for the driver of the rental car and passengers inside the vehicle.
You probably don’t need this form of insurance when driving an
exotic car rental in Los Angeles. Any benefits offered may already be present in your life, car, or health insurance policy. Health insurance from the United States may not be accepted if you travel abroad. In this case, it’s best to purchase travel insurance that includes emergency transportation and medical benefits. Fortunately, these benefits will pay for any emergency medical expenses overseas,