It’s never been easier to find great deals on rental cars, but the price can quickly climb and sometimes even double, due to the cost of rental insurance. What you may not know is that your car insurance or credit card may already cover your rental vehicle. It’s important to do your research to determine if purchasing rental car insurance is really the best choice for you.
Your Car Insurance May Already Cover Your Rental Car
If you have a car insurance policy with Royce Williams Agency, your insurance may carry over to your rental car. This includes your collision, comprehensive and liability coverage. In addition, by signing up with AllState Motor Club, you can often save money on car rentals, further reducing your costs.
Differences in Terminology
One of the primary contributors to the confusion that surrounds rental insurance is the differences in terminology used by most rental car companies. Here are a few common terms you may hear tossed around the rental car counter that might leave you perplexed.
- Personal Effects Insurance Coverage protects your belongings in the case that they are stolen from your rental vehicle. While not covered under your Royce Williams auto insurance policy, you may be covered under your homeowners insurance personal property coverage. You can also add personal effects insurance coverage to your home or renters insurance, which also often includes property that is off premise too!
- Personal Accident Insurance helps in the event of an injury or accidental death while in the rental vehicle. Often, it will extend to other drivers operating the vehicle as well. This may be covered by your health insurance and can also be covered by supplemental health insurance through an auto insurance policy with Royce Williams.
- Collision Loss/Damage Waiver, also called CDW or DW, offers similar protection as auto insurance, but it’s not actually insurance. It’s more of a waiver, where the rental car company agrees not to issue a claim against you in the instance you damage the vehicle. Often this comes with restrictions, such as driving outside of a certain area or driving while impaired. This, too, may already covered under your collision or comprehensive coverage insurance after deductibles.
Check with Your Credit Card Company, Too
After checking with your auto insurance provider to see if your rental car is covered, you should call your credit card company to learn about their coverage options. Many times credit card companies will provide secondary coverage for rental cars. This means they will cover you only after your primary insurance provider covers you first. This is helpful in covering things like deductibles, coverage gaps and more.
So, Should You Purchase Rental Car Insurance?
Purchasing insurance for your rental car is not always a bad option. It may make sense if you want to keep your auto insurance premium from increasing after an accident or if you have a high deductible. Many times though, it’s better to go without it. Do your research to determine the best solution for you.
To learn more about what’s covered under your auto insurance policy, download our free ebook “6 Parts to An Auto Insurance Policy” or call Royce Williams Agency at (615) 356-4800.
