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Consumer Reports shares how to navigate rental car insurance

Consumer Reports shares how to navigate rental car insurance


When renting a car, many people are unsure if they need rental car insurance, as coverage varies depending on their auto insurance and credit card policies. “I would say I rent a car probably about 20 times a year,” said consumer Sean Beasley. As for insurance, Beasley said he’s covered. “I don’t get insurance because my insurer, my vehicle insurer, automatically offers us rental car insurance,” Beasley said. He said he pays a monthly fee to his insurer for the “rental coverage” included with his policy. “Both auto insurance and credit cards can have significant limitations regarding rental cars, including what kinds of vehicles they cover, for how long, and in what countries,” said Lisa Gill of Consumer Reports. However, rental car insurance can be expensive, sometimes costing up to $50 per day. Many renters wonder whether the additional coverage is worth the price. “If you only have liability insurance on your own car, you’ll need to get a separate policy for the car rental in case there’s damage to it in the event of a crash,” Gill said. Other factors to consider include whether the rental car is more expensive than your own vehicle. Some credit card, rental insurance, and personal auto policies may not cover certain types of vehicles, such as large SUVs or luxury cars.Renting in a foreign country is another consideration. Auto insurance coverage from companies like Allstate, Geico, Farmers, State Farm and Progressive often only extends to rentals in the U.S. and Canada. The same goes for most credit card insurance policies. If you decide to add extra insurance, consider options like collision damage waiver, which covers damage from accidents, loss damage waiver, which protects against theft or damage, and liability coverage, which covers you if you are responsible for property damage or injuries to others. Terms may vary depending on the rental car company. Check with your employer about the coverage details before renting a car for work, as personal insurance and credit cards likely won’t cover such rentals.

When renting a car, many people are unsure if they need rental car insurance, as coverage varies depending on their auto insurance and credit card policies.

“I would say I rent a car probably about 20 times a year,” said consumer Sean Beasley.

As for insurance, Beasley said he’s covered.

“I don’t get insurance because my insurer, my vehicle insurer, automatically offers us rental car insurance,” Beasley said.

He said he pays a monthly fee to his insurer for the “rental coverage” included with his policy.

“Both auto insurance and credit cards can have significant limitations regarding rental cars, including what kinds of vehicles they cover, for how long, and in what countries,” said Lisa Gill of Consumer Reports.

However, rental car insurance can be expensive, sometimes costing up to $50 per day. Many renters wonder whether the additional coverage is worth the price.

“If you only have liability insurance on your own car, you’ll need to get a separate policy for the car rental in case there’s damage to it in the event of a crash,” Gill said.

Other factors to consider include whether the rental car is more expensive than your own vehicle.

Some credit card, rental insurance, and personal auto policies may not cover certain types of vehicles, such as large SUVs or luxury cars.

Renting in a foreign country is another consideration. Auto insurance coverage from companies like Allstate, Geico, Farmers, State Farm and Progressive often only extends to rentals in the U.S. and Canada. The same goes for most credit card insurance policies.

If you decide to add extra insurance, consider options like collision damage waiver, which covers damage from accidents, loss damage waiver, which protects against theft or damage, and liability coverage, which covers you if you are responsible for property damage or injuries to others.

Terms may vary depending on the rental car company.

Check with your employer about the coverage details before renting a car for work, as personal insurance and credit cards likely won’t cover such rentals.



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