You are standing next to a rental car with a long line behind you. You have a great rate for a car for a week and you are ready for a vacation with your family. Then you get storage with an intimidating car rental agreement filled with misleading insurance options. Does car insurance cover rental cars?
How to tell if you need rental car insurance
The first step is to check your car insurance policy or contact your service provider to find out what type of car rental insurance may already be included in your personal car insurance policy. If you have full civil liability insurance for a personal car, this insurance usually covers a car rented in the United States.
What types of car insurance do car rental companies offer?
Rentals offer a range of insurance options. Some of the most common are:
- Release from liability for losses / collisions: it covers the costs if the rented car is stolen, damaged in an accident or devastated.
- Civil / additional liability insurance: covers insurance against damage to other vehicles or property while driving a rented car. It can also cover the costs of treating the other driver and his passengers if you are guilty of an accident.
- Accident insurance: you pay for medical bills for you and your passengers if you rent a car in an car accident during an accident.
- Personal belongings protection: Insure you if personal belongings are stolen or damaged in a rented car.
You will pay in advance for all damage
You can cover your liability for serious damage by relying on your own insurance, credit card with insurance, or a third party policy. But in all these cases you must pay the claim for damages in advance and then recover as much as possible (all this, I hope) by submitting the claim later. This means signing a credit card bill for hundreds or even thousands of dollars after returning the damaged car and not knowing if you can get that money back.
That is why many landlords do not accept rents with a debit card or a small credit card. If you can pay the initial rental fee with a debit card, you still need to provide a credit card to cover any claim for damages that will be made before leaving the refund stand.