What Does Car Rental Insurance Cover?

• 1. What Is Car Rental Insurance?
• 2. Types of Car Rental Insurance Coverage
• 3. How to Check Your Coverage When Renting a Car
• 4. Should You Purchase Rental Insurance?

1. What Is Car Rental Insurance?

Car rental insurance is a type of coverage offered by rental car companies to protect you against potential financial losses in case of an accident, theft, or damage to the rental vehicle. While car rental insurance is not mandatory, it can provide peace of mind during your trip, especially when you're driving in unfamiliar areas or unfamiliar roads. However, the type of coverage you need depends on your existing insurance and the rental company’s policy.

2. Types of Car Rental Insurance Coverage

Car rental companies typically offer a variety of insurance options, each designed to protect against specific risks. Understanding the types of coverage available can help you make an informed decision on whether or not to purchase it.

• Collision Damage Waiver (CDW) or Loss Damage Waiver (LDW): CDW and LDW are the most common types of car rental insurance. They cover damage to the rental car in case of an accident or theft. While these waivers typically relieve you from being held financially responsible for damages, they may have certain exclusions or limitations.
• Liability Insurance: This type of coverage is important as it covers damages to other people’s property and medical expenses if you are at fault in an accident. It is often a requirement in many states. If the rental company’s liability coverage doesn’t meet the legal requirements, you may need to purchase additional insurance.
• Personal Accident Insurance (PAI): PAI provides coverage for medical expenses if you or your passengers are injured during the rental period. It typically covers hospital and ambulance fees, as well as accidental death benefits.
• Personal Effects Coverage (PEC): This insurance covers personal belongings inside the rental car in case of theft. However, it often has limits and may exclude certain high-value items, such as electronics or jewelry.
• Supplemental Liability Insurance (SLI): SLI provides additional coverage for third-party injuries or property damage caused by an accident. It’s often a good idea if your personal auto insurance does not offer sufficient liability coverage.

3. How to Check Your Coverage When Renting a Car

Before you decide whether to purchase rental car insurance, it’s important to check your existing coverage. Here’s how you can ensure you’re adequately protected:

• Check Your Personal Auto Insurance: Many personal car insurance policies cover rental cars, including collision and liability coverage. It’s essential to contact your insurance provider to confirm whether or not your policy extends to rental vehicles.
• Check with Your Credit Card Company: Many credit cards offer rental car insurance as a perk when you use the card to pay for the rental. Review the terms and conditions of your card’s coverage, as it may only cover certain types of damage or have specific exclusions.
• Ask the Rental Company: Rental car companies will provide details on their insurance options, but you should always confirm what is covered and if there are any exclusions in the fine print. For example, many rental companies don’t cover damage to tires, windshields, or undercarriages.

4. Should You Purchase Rental Insurance?

Deciding whether or not to purchase rental insurance depends on several factors, including your existing coverage and the level of risk you are willing to assume. Here are some tips to help you decide:

• If you have existing coverage: If your personal auto insurance or credit card covers rental vehicles, you may not need to purchase additional insurance. However, always double-check the terms and confirm the extent of the coverage to avoid any surprises.
• If you're traveling internationally: If you're traveling abroad, your U.S. auto insurance policy may not extend coverage to rental cars. In this case, it’s advisable to purchase coverage from the rental company or through third-party insurers.
• If you prefer peace of mind: If you're not comfortable with the potential risks of driving a rental car without coverage, purchasing the optional insurance can give you peace of mind. It’s especially important if you’re unfamiliar with the area or planning to drive on unfamiliar roads.

When renting a car, it's crucial to evaluate your options and choose the best insurance coverage for your trip. For more information about car rentals and insurance, visit Carvel Car Rental to book your rental and get the right coverage for your needs.