Opting out of auto rental insurance can cost thousands down the line, but that doesn’t mean car rental insurance coverage at the counter is the only option. There are several affordable, trustworthy options when it comes to auto rental insurance.
Opting out of the rental car insurance at the rental agency is certainly not unusual. But driving without auto rental insurance is risky at best, and at worst can cost thousands of dollars (up to and including reimbursing the agency for a new rental car). After all, it’s been proven that people simply drive worse in rental cars, from inattention to aggressive driving and more.
Many people might be wary of the car rental insurance coverage pushed on them by rental agencies, and potentially for good reason: a Consumer Reports survey had 31% of respondents report surprise fees on their bill.
But car rental insurance coverage isn’t a scam and there are options to choose from. After all, for a low cost of $30-$60 per day, insurance on rental cars is important financial protection from a massive bill should things go sideways, not to mention providing valuable peace of mind.
Auto Rental Insurance is Financial Protection
Understanding auto rental insurance coverage is key to making an informed decision.
Auto rental insurance typically covers four categories:
- Collision and theft: this coverage involves signing a loss-damage waiver (or collision damage waiver) that protects from the cost of any damage to the vehicle or theft of the vehicle. Without the waiver, current auto insurance could kick in here too under the collision and comprehensive coverage after the deductible is paid.
- Damage to other vehicles: liability insurance protects from any damage caused to other vehicles or property, typically up to $1 million. For those with auto insurance already, this is what their liability insurance would cover.
- Injuries: auto rental insurance would cover medical costs if the driver or their passengers were injured while in the vehicle, including ambulance, medical care and death benefits. For those using their own auto insurance, this would fall under personal injury protection.
- Theft: for belongings stolen from the vehicle, a set dollar amount is covered by the auto rental insurance. Otherwise, homeowners or renters insurance could be used for reimbursement if the auto rental insurance was skipped.
It’s important to note that auto insurance policies don’t typically cover rental vehicles being used for business purposes. Existing auto insurance also can’t be used as rideshare insurance, which needs to be purchased separately. For those needing no license car insurance a more specialized policy is also needed.
A lot of things can go wrong while driving a rental vehicle and being stuck with a massive bill at the end of the trip just isn’t worth it when the options for auto rental insurance are so easy.
Choose the Right Auto Rental Insurance Option
The good news is that many auto insurance policies offer more than sufficient coverage, so auto rental insurance may not even be needed. But without auto insurance or for those with bare bones coverage, auto rental insurance is a smart idea.
Luckily, there are options when it comes to insurance on rental cars:
- Rental agency insurance: this is where people most commonly feel the pressure of purchasing auto rental insurance. The rental counter will want drivers to purchase their auto rental insurance, but remember that opting out is completely fine (especially with coverage from another source).
- Third party car rental insurance: planning ahead before picking up the rental vehicle means time to get a standalone auto rental insurance policy from a number of providers. This is a great option to save money and get great coverage. This also helps ensure regular auto insurance premiums won’t go up if there’s an accident in the rental vehicle.
- Credit card coverage: many credit cards offer auto rental insurance if the rental cost is charged to that card. It’s worth looking into before the next trip.
Having options can save drivers serious money when it comes to insurance on rental cars and with so many options at the click of a button, auto rental insurance should never be skipped.
Consumer Coverage has made it easier than ever to find the best auto rental insurance option at the right price. By comparing multiple quotes and selecting the best coverage for each unique drive, Consumer Coverage makes it easy to be protected in rental cars while saving money.
About Consumer Coverage
Consumer Coverage was designed with one goal in mind: simplifying the insurance process and saving consumers money. By doing the hard work for consumers and finding the absolute best insurance coverage option for each unique person, Consumer Coverage helps save up to 30% on premiums.
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