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304 North Cardinal St.
Dorchester Center, MA 02124
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Your plane just landed, and you’re on your way to pick up your rental vehicle. But before you hit the rental counter, you might wonder—do you need car insurance? Typically, you don’t need personal auto insurance to rent a car. However, if you don’t have insurance for your own car, you’ll need to buy it from the rental car company or use a credit card that offers coverage. Here’s what you need to know to ensure you’re protected when you drive off the rental lot.
Personal auto insurance isn’t required to rent a car, but you do need some type of insurance coverage. If you don’t have your own car insurance, you can:
Even if you have personal auto insurance, you’ll be offered the option to buy coverage from the rental car company. Rental car insurance can be expensive and may duplicate coverage you already have. You can decline the rental company’s offer of coverage and use your own car insurance, credit card insurance, or other policy instead.
Your existing car insurance policy most likely provides adequate coverage for vehicles you rent for personal use in the U.S. or Canada. To be safe, check with your insurer to confirm your coverage before heading to the rental counter.
Auto insurance policies typically include the following coverage:
What if your luggage or camera is stolen from the rental car during your trip? Homeowners insurance and renters insurance often cover personal belongings while in your car. Check with your insurance issuer to see if this extends to rental vehicles.
Find out if your credit card offers car rental insurance by checking your credit card agreement or calling the number on the back of your card. Get the details in writing so you know exactly what’s covered. If you have multiple credit cards offering rental car insurance, compare each card’s coverage to find the best protection.
Credit card rental insurance usually covers the same things as collision and comprehensive insurance—that is, collision damage to or theft of the rental car. However, credit cards generally don’t cover liability, personal belongings, medical expenses, or personal injury. For those, you’ll need to rely on your personal car insurance or rental car insurance.
Even if your personal car insurance covers rental vehicles, renting a car with a credit card that includes rental insurance may save you money. Credit card rental insurance is usually secondary to your car insurance, which means you file a claim with your car insurance company (the primary insurance) first. Once they pay out, the credit card insurance kicks in to cover any remaining costs. It may even cover your insurance deductible.
Between your auto insurance and your credit card, your rental car may be fully protected. If not, you can fill in coverage gaps with insurance from the rental car company.
Rental car companies typically offer four kinds of insurance:
When should you buy rental car insurance, and when can you rely on your own car insurance or a credit card? You may want to buy rental car insurance if:
If you don’t own a car but frequently rent vehicles, purchasing short-term or non-owner car insurance might cost less than constantly buying rental car insurance. Both types of coverage are designed for people borrowing or renting a car.
Short-term auto insurance is usually limited to basic liability coverage. Non-owner car insurance includes basic liability coverage and may also offer personal injury protection or medical coverage. However, neither type of insurance covers you if the rental vehicle is stolen or damaged. For full protection, either rent the car with a credit card that provides the missing coverage or buy the appropriate coverage from the rental car company.
While checking whether your car insurance covers rental cars, why not do some price shopping, too? Use Experian’s auto insurance comparison tool to get quotes—and possibly save hundreds of dollars on car insurance.
Credit cards with perks such as rental car coverage often require good credit. Check your credit report and credit score before applying for a new credit card to see where you stand. You can help improve your credit score and qualify for rewards credit cards by reducing debt and paying bills on time.
Is Insurance on a Leased Car More Expensive? If you’re thinking about leasing a vehicle, here’s what you need to know about insurance requirements and costs.
For any mortgage-related needs, O1ne Mortgage is here to help. Call us at 213-732-3074 for expert advice and assistance.
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