Most auto insurance policies cover rentals for personal, not commercial, use. Generally, the limits and deductibles on your policy extend to a rental car. However, it’s best to call your insurance company to determine if your coverage extends to damage, theft, loss-of-use, diminished value, administration, towing and storage fees.
Your credit card company may also offer coverage for rental cars. This may be enough to fill any gaps in your personal insurance policy, especially in the event of damage to the vehicle. Remember to ask about the other fees.
At the rental counter, you’ll be asked about four coverage options:
- Loss-damage waiver (LDW) also known as collision damage waiver (CDW)
- Supplemental liability protection (SLP)
- Personal accident insurance (PAI)
- Personal effects coverage (PEC)
The loss-damage waiver merits consideration. If your personal insurance and credit card rental coverage do not provide this, purchasing it can save you a lot of cash and stress in the event of vehicle damage.
However, in most cases, you can close your wallet for the other three options. Most states (except New Hampshire) require you to buy a state-mandated amount of liability coverage. You can also decline the personal accident insurance if your personal health insurance covers accident-related injuries. And, if your homeowner’s or renter’s insurance policy has off-premises coverage, your personal items are covered in the rental car.
While choosing the right car rental coverage to provide protection, and not wasting your money, can be a bit of a puzzle, choosing a collision repair shop in the event of an accident shouldn’t be. If your personal vehicle incurs damage and needs repair, make sure you take it to a Gold Class® designated collision repair shop with trained technicians who know how to repair your vehicle properly. Enter your Zip code to find a shop near you.