Getting auto insurance is an important consideration, limiting the financial impact of any collision that may occur while you’re on the road. But what happens when it’s time to rent a car? Do you need to buy more insurance just for the rental, or are you covered? What is the purpose of the additional coverage being sold at the rental counter and is it optional or required? Settling these questions once and for all can give you peace of mind before your next jet-setting business trip or exciting road trip vacation.
Rental insurance: Required?
Whenever you rent a car in the U.S. – in any state – the additional coverage products sold at the desk are optional. You don’t need to purchase extra insurance to acquire a rental car. These rules aren’t necessarily the same overseas, as every country has its own set of driving laws. Be sure to check with your rental partner when renting a car outside of the U.S.
In many cases, your auto insurance policy will take effect, even when you’re driving a rental car. If you’re not sure whether you’re covered, check with your car insurance provider. Your coverage may extend to rental vehicles, leaving you well prepared to take the wheel.
Optional coverage options
There are typically a few coverage products available at the rental counter. These are optional, but they can provide an extra layer of protection, especially if you don’t have auto insurance that will work during your rental.
Collision coverage is designed to pay for any damage that occurs to the rented car in the case of an accident.
Liability coverage helps with costs that come from damaging another motorists vehicle or causing personal harm in a collision.