Do I Need Rental Car Insurance?

Chances are that if you have previously rented a car for personal or business reasons, an agent from the company attempted to sell you their rental car insurance. Many people wonder if this is a necessary supplementary expense or if their personal auto insurance policy will cover any issues that may arise. Deciding whether or not to purchase this type of insurance can be confusing for renters because they may not fully understand their own auto coverage, and rental car agencies make a commission off of the policies that they sell to customers. If you have questions about rental car insurance in San Diego, California, Windfall Insurance Services Inc. can help. Continue reading to learn if you need rental car insurance.

Rental Car Insurance: The Basics

Essentially, rental car insurance is an additional policy option that you can purchase when you need to rent a car that helps protect you financially if there is an accident or theft. Rental insurance costs will vary depending on the policy, but can cost $50 – $100 per day on average. Insurance coverage will generally cover the following:

● Personal accident insurance – Covers the cost of medical expenses in the event that the driver or passengers become injured in an accident.

● Collision damage waiver – Covers the damage to a rental car during an accident or theft of the vehicle. It should be noted that this is technically a waiver that states the rental agency will not hold the driver responsible for all the damages, however, if the driver is to be found at fault in the incident, they still could be held accountable for vehicle loss of use.

● Personal effects coverage – Reimburses a policyholder for any personal belongings that are stolen from a rental car.

● Supplemental liability insurance – Protects a policyholder if they damage another driver’s vehicle or property while driving a rental car.

Is Rental Car Insurance Necessary?

Most rental car agencies will require at least a minimum amount of insurance coverage on their automobiles, even though a driver is not required to have their own auto insurance policy in order to rent a car. If you do not hold an auto insurance policy, you would likely be held responsible for substantial financial costs if you become involved in a rental car accident. If you do have your own auto insurance, it could provide adequate coverage in most situations, and you also have the option to either buy a policy from a third party, or a policy from the agency itself. You will want to closely review your auto insurance policy with your agent to confirm your deductible and verify what your policy will and will not cover.

If you have questions about rental car insurance in San Diego, California, contact Windfall Insurance Services Inc. today for a consultation.