Rental car companies will push you to get some form of insurance while taking out a car. But do you need it? Are there any alternatives? This article covers rental car liability insurance and alternative options to pay for insurance.
Table of Contents
What Is Rent Car Liability Insurance?
When renting a car, companies will offer you a list of coverages for the vehicle. The level of damage covered by each coverage will vary. They can be offered in an all-in-one insurance package or sold separately.
Rent car liability insurance is insurance that covers damages to another vehicle or person if you get in an accident. Also called supplemental liability insurance, or SLI, it can even cover medical expenses for people who get injured in an accident that resulted because of you.
If you think rent car liability insurance is not for you, you may go for some other form of coverage. Other types of insurances offered by the rental car company may include any of the following:
- Loss Damage Waiver: The loss damage waiver (LDW) is an insurance that does not hold you responsible for any damage to the car, or if it gets stolen or is vandalized. Also known as collision damage waiver (CDW), it is quite an expensive deal, and rental agents will push you to get it.
- Personal Accident Insurance: If you get in an accident, personal accident insurance or PAI covers the medical expenses of you and the people you were travelling with.
- Personal Effect Coverage: If your personal items get damaged or stolen from your rental car, the personal effects coverage, or PEC, covers your losses.
The question while renting a car is whether you even need the renter’s insurance or not. Let’s answer this next.
Do You Need Extra Insurance When Renting A Car?
The rental car company might offer you with insurance plans that give you the option to just return the car and forget about it without any liabilities. And where this no strings attached policy might look appealing, you may not even need it. So when do you need extra insurance when renting a car?
Check your own car insurance policy. Many insurance providers extend their insurance to include collision or loss damage waivers for rental cars as well. But, this coverage may be limited within certain geographical boundaries. Usually, car insurance in the US will not pay for car rentals in Mexico or Europe.
You need extra insurance only if your own insurance does not extend to the rental car, or is not enough to cover all damages. Otherwise, you will save a lot of hassle which comes with filling out paperwork for new insurance and you might even get a cheaper deal if you use your own insurance.
Do Debit Cards Cover Rental Car Insurance?
Many people confuse between debit and credit cards. Debit cards let you make payments by using the money already available in your bank account. Credit cards, on the other hand, let you buy stuff and keep accumulating the bill, which you pay after some time with interest. Generally, you may be able to rent a car w ith a debit card, but it will not cover rental car insurance
Credit cards, on the other hand, give you the option to cover your rental car insurance. To get the insurance, credit card companies require that you pay for the car rent through them as well. This can limit your options of which car to go for. For instance, SUVs and off-roading jeeps are typically not included in credit card car rental options. To what extent is the coverage depends on your credit card company. You can have primary or secondary insurance, based on the type of your card.
Dollar Rental Car Insurance Cost Per Day
Dollar Car Rental is a global car rental company with its headquarters in Florida, US. They offer a wide variety of cars to choose from. Dollar car rental provides a number of rental car insurance options to choose from as we. If you have your own insurance policy, you may go with that as well. No proof of insurance is required at the time of rental.
The cost of dollar rental car insurance per day varies from state to state and depends on the plan or plans you might have purchased. It also depends on where you’re travelling and your current insurance plan.
Buy Rental Car Insurance Online
If you are not open to renting a car through your credit card and your own car insurance policy does not provide coverage on rental cars, you may want to go for a stand-alone policy. It can be bought before you leave for your vacation and does not need to involve your rental car company.
Listed below are the best companies to buy rental car insurance online in 2020:
- Bonzah: Costs for insurance start as low as $7.99 per day. Bonzah provides coverage of up to $35,000 for vandalism, theft, collision or damages to the car with no deductible. It also offers rent car liability insurance of up to $1 million.
- Insure My Rental Car: Insure My Rental Car has daily as well as yearly plans for renters. Costs start as low as $6 per day for daily coverage. Bookings done online may also make you eligible for other insurance options, like roadside assistance and personal effects coverage.
- Sure: Costs start at $7.99 per day, and offers coverage of up to $100,000 for damages or theft of the car. It also provides flat tire coverage, towing coverage, reimbursement of lost keys and accidental coverage by using the wrong fuel.
- Allianz: Allianz offers a special Rental Car Damage Protector that provides up to $40,000 coverage for collision, theft or damage. It also provides personal effects coverage of up to $1000, Costs start at $9 per day, with residents of Florida enjoying at $7 per day.
Rent car liability insurance may be a good idea if you want peace of mind while on your travels. However, it is often good to plan ahead and see if you even need to get rental car insurance or not. You might end up saving money and enjoy a more leisurely trip!