What Is Rental Car Coverage and How Does It Work?

When renting a car, you might wonder if you really need rental car insurance. At Sill & Associates Insurance Agency, LLC, we’re here to help you understand your options and decide on the best protection for your rental. For drivers in Anderson County, Greenville County, Spartanburg County, Laurens County, and Pickens County, our team can guide you through the types of coverage available and help you make an informed choice.

What Is Rental Car Coverage?

Rental car coverage includes different types of protection that cover you in case of accidents, theft, or unexpected incidents with the rental vehicle. Coverage options are available directly from the rental company and include:

1. Collision Damage Waiver (CDW) or Loss Damage Waiver (LDW): This waiver relieves you of financial responsibility if the rental car is damaged or stolen.
2. Liability Coverage: Covers damages or injuries you may cause to others while driving the rental.
3. Personal Accident Insurance (PAI): Provides medical coverage for you and your passengers in case of an accident.
4. Personal Effects Coverage (PEC): Protects personal items inside the rental if they’re stolen.
5. Roadside Assistance: Covers expenses for towing, key replacements, and other emergency roadside services.

Each type offers specific protections, so it’s important to understand what your personal insurance already covers before choosing.

Do You Need Rental Car Insurance?

In many cases, your personal auto insurance may extend to rental cars, which could save you from paying for duplicate coverage. Here are some key questions to ask your insurance agent to determine if you’re already covered:

• Does my auto policy’s liability, comprehensive, and collision coverage apply to rentals?
• If I have a deductible on my own policy, would it apply to rental car repairs?
• Does my roadside assistance extend to rental cars?
• Are my belongings covered if they’re stolen from the rental?
• Does my policy include coverage for loss of income the rental company may charge if the car needs repairs?

Knowing these answers can help you avoid unnecessary costs and ensure you have the protection you need.

Does Your Credit Card Cover Rental Car Insurance?

Many credit card companies offer rental car coverage as a benefit, especially when you use the card to pay for the rental. Credit card coverage typically acts as secondary insurance, meaning it covers costs left after your personal auto insurance has been applied. However, not all cards provide the same coverage, so it’s best to check with your card issuer about any limitations, especially for high-value or specialty vehicles.

Reviewing Rental Car Coverage Options

Before signing up for rental car insurance, review all coverage options carefully. Depending on your personal auto insurance policy and credit card benefits, you may only need specific types of coverage from the rental agency. For example:

• If your personal auto policy doesn’t cover collision, consider purchasing the rental’s Loss Damage Waiver to protect yourself.
• If you lack medical payments coverage on your policy, you might need Personal Accident Insurance.
• For additional peace of mind, Roadside Assistance through the rental agency can ensure support for breakdowns or emergency towing.

Special Considerations for Car Sharing and International Rentals

If you’re renting through a peer-to-peer service, insurance requirements may differ. Many car-sharing companies include some level of insurance in the rental fee, but it’s crucial to read the agreement carefully, as limits and exclusions may apply.

When renting internationally, you may need added protection. Contact your insurance agent or credit card company in advance to confirm if your current coverage extends to foreign rentals. If not, paying for international rental car insurance can provide the necessary protection abroad.

Renting for Business or Leisure?

Personal insurance coverage often doesn’t extend to rentals for business purposes. If you’re renting a car for work, review your options through your employer or consider coverage from the rental agency.

Contact Sill Insurance to Explore Rental Car Coverage Options

Navigating rental car insurance can feel overwhelming, but we’re here to help you make an informed decision. Whether you’re renting a vehicle for a road trip or an international adventure, Sill & Associates Insurance Agency has the answers you need.

Get in Touch with Sill Insurance Today

• Phone: 864-345-SILL (7455)
• Email: [email protected]
• Address: Post Office Box 704, Mauldin, SC 29662
• Website: https://sillinsurance.com

Let Sill Insurance guide you in choosing the right rental car coverage for your peace of mind on the road.