Car Accidents in Rental Cars: Is It Worth Buying the Optional Insurance Coverage When You Rent a Car?

Any time you rent a car, it is likely that the company you rent the car from will try to convince you to add extra insurance. However, you might already be covered by your own insurance policy or by the credit card you are using to pay for the rental. That said, there are some instances in which it pays to get this extra coverage. Keep reading to learn what they are and contact The Law Offices of Larry H. Parker at 800-333-0000 if you have been injured in a car accident involving a rental car.

One of These Three Sources of Insurance Might Cover Damage in a Rental Car

There are three types of insurance that can potentially cover you. First is your own car insurance. Check your policy to see what it covers when you are in a rental car. Second, the credit card you used to pay for the rental likely offers supplemental rental insurance, as this is a standard perk. Finally, your third option is additional rental coverage you purchase from the rental car company. If you choose add-on coverage or coverage from the rental company, it will likely cover:

  • Collision damage including damage to the rental car and it being stolen.
  • Liability if you are sued due to your use of the rental car. This limit is generally $1 million.
  • Personal accident insurance covers medical costs.
  • Personal effects coverage covers your personal items in the vehicle such as luggage and electronics.

Determine What Coverage You Have Before You Decide if You Need Additional Coverage

Of course, you want to be protected if you are in a car accident, hit a pedestrian, or otherwise yourself or others, or cause property damage in an accident. However, you might have coverage through your auto insurance, your injuries might be covered by your health insurance, and your renters or homeowners insurance might even offer some coverage for property damage.

If you do not have auto insurance at all (for example, if you do not currently own a car), then you should buy the optional insurance from the rental car company. In fact, they might require you to do so in order to rent a vehicle from them.

Coverage from Your Credit Card Company

Many of the major credit cards will offer insurance that comes into effect after your own auto insurance policy has paid what it is going to pay. In some cases, this credit card coverage will reimburse you for up to $1,000 of your deductible. It generally only covers property damage, towing costs, and loss of use. Credit card coverage generally does not cover medical costs or other types of liability.

Before deciding if you should get the extra coverage, talk to your insurance company. If you have already been involved in an accident in a rental car (or with someone who was driving), contact The Law Offices of Larry H. Parker at 800-333-0000 now for a free legal consultation.