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Rental Vehicle Insurance Tips

posted on Wednesday, July 29, 2020

We are in the peak of summer vacation season and, many travelers are looking to hit the road with their friends and family. Rental vehicles are becoming a very popular mode of transportation for summer vacations this year. With that being said, rental vehicle insurance can be confusing. For some drivers, rental insurance is necessary. For others, this can become a redundant expense. We have provided you with some information that will help you navigate rental insurance before you go on your vacation this summer.

Check with your provider before you rent.

Before renting, it is important to always review your current coverage on your auto insurance policy. The coverage you have on your current policy might cover your rental insurance, so purchasing auto insurance from the rental company could end up duplicating what you are paying for.

In some cases however, the extra cost for coverage from rental companies may make sense. It is important to fully understand your personal auto insurance coverage versus what the rental company is offering before you rent.

How to know if your personal coverage covers rental vehicles?

By law, your current auto insurance policy covers liability coverage. After that, you may be insured by any other coverages you opted in for. Other coverages may include comprehensive coverage and collision coverage. Your personal auto insurance coverage may be extended to your rental vehicle if you are using it for personal use. Reach out to your provider for more information on your policy before you rent. It could save you a significant amount of money on your vacation.

When is picking up rental vehicle insurance a good idea?

  • If your employer covers your auto insurance policy and this is your only form of vehicle insurance.
  • Your current auto policy doesn’t cover comprehensive and collision coverage.
  • If you don’t want the risk of paying a high deductible if an accident happens.

What are some of the different types of rental insurance options?

Liability Coverage

Liability coverage helps protect you if you injure someone or damage their property while driving. As stated earlier, this portion of your personal auto insurance may extend to rentals. In this case, you may not need to buy extra rental vehicle liability insurance coverage from the agency. Contact your insurance agent before and go through what your entire policy covers.

Collision/Loss Damage Waiver (LDW or CDW)

For a daily fee, this coverage may waive all or part of its cost if the rental vehicle is damaged, stolen, driven recklessly by an unauthorized driver, etc. This is another case where you may not need to buy extra rental vehicle liability insurance coverage from the agency. Contact your insurance agent before and go through what your entire policy covers.

Personal Effects Coverage

This coverage may help cover your personal belongings, such as technology or clothing, if they are stolen from the rental vehicle. Again, this coverage may duplicate coverage from your renters or homeowners policy. Contact your insurance agent before and go through what your entire policy covers.

Personal Accidents Insurance

Personal accident insurance helps pay your and your passengers' medical bills if you're injured in a rental car accident. You may have this covered as well, contact your insurance agent before and go through what your entire policy covers.

See if your credit card offers vehicle rental insurance.

In addition to all of your coverages, your credit card may cover vehicle rental insurance. It may be worth your time to call the toll free number on the back of your credit card to see if this is the case.

Get insured through Midwest Heritage.

Midwest Heritage is a robust independent insurance agency who partners with 10+ of the top insurance companies in the country. Exclusive discounts on home and auto insurance are available to Midwest Heritage banking customers and Hy-Vee employees. Midwest Heritage can explore the marketplace on your behalf to find you great coverage at a very competitive rate. Click here for more information.