What is rental car coverage?

Thursday, May 28th, 2009

Rental Car Insurance Coverage

When someone uses the term "rental car insurance coverage," it can mean two different things.

One is auto insurance coverage offered by rental car companies on their own rental cars. If you already have third party liability coverage and comp and collision insurance on your personal auto insurance policy, then the coverage is normally extended to rental cars.

Therefore, you normally do not need to accept the optional insurance (which can be very expensive) offered by a car rental company. However, check your personal policy or ask your insurance agent to be sure your policy will cover.

Rental car coverage can also refer to an add-on to your own insurance policy that covers free car rentals while your vehicle is in repair. If you do not have a second car, it’s a good idea to add this type of insurance onto your automobile insurance policy. It’s normally very affordable and can save you a considerable amount of money by providing free car rentals in the time of need.

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