Do I Need to Buy Additional Auto Insurance When Renting a Car?

Your rental car may be covered under an existing policy or credit card.

While neglecting to purchase insurance is rarely a good thing, when it comes to rental car insurance, there's a good chance that you are already covered under your personal auto policy, your travel insurance or your credit card.

Auto Insurance

Before purchasing insurance for your rental car, check with your insurance agent to make sure your personal auto policy doesn't cover rental cars. Your policy may cover liability or other damages to cars you rent.

Credit Card Coverage

If you plan to pay for your rental car with a credit card, determine whether or not your credit card provides collision or damage coverage for the car you rent. Some credit cards even offer their own rental car insurance at lower costs than rental agencies.

Travel Insurance

If you are renting a car as part of a vacation package for which you purchased travel insurance, check to see if insurance for the rental car is included in the insurance package.

When in Doubt

If you're not sure, purchase additional coverage. If your personal auto premiums are already high due to accidents or theft, or you are worried that existing policies or credit card plans do not provide sufficient coverage, purchase rental car insurance.

References

• BankRate: Does Your Credit Card Insure a Rental Car?

Resources

• Should You Pay for Rent-a-Car Insurance?