Rental Car Insurance Demystified

Whenever you rent a car, you are always asked if you want to purchase the supplemental rental insurance. In the interest of saving a few bucks you may decline believing you are already covered under your auto insurance policy. However, it is good to know exactly what the additional rental car insurance covers before you turn it down, and you need to be aware of what you are covered for on your own auto insurance policy.

Supplemental rental car insurance is additional protection beyond the state mandated minimum liability insurance amounts. It is not a bad idea to purchase since minimum state liability requirements are very low and may not provide adequate coverage. However, if you already have liability auto insurance coverage on your own policy, you will have liability protection for your rental car as well.

If you have dropped comprehensive and collision coverage from your auto insurance policy, you will not be covered if the rental car is damaged or stolen. In this case, purchasing additional rental car insurance coverage in the form of a loss damage waiver or collision damage waiver is definitely a good idea.