Liability Insurance:
* Third-party liability: This covers you in case you cause damage to another person's property or injure someone while driving the rental car.
* Limits: The amount of coverage will have limits, meaning the insurance will only pay up to a certain amount for damages or injuries.
* Personal injury protection (PIP) and uninsured/underinsured motorist (UM/UIM): Some rental car companies offer this type of coverage, which can protect you and your passengers in case of an accident with an uninsured or underinsured driver.
Damage Coverage:
* Collision Damage Waiver (CDW): This coverage waives your responsibility for damage to the rental car, even if you're at fault in an accident.
* Loss Damage Waiver (LDW): This coverage is similar to CDW, but it also covers theft of the vehicle.
* Supplemental Liability Insurance (SLI): This coverage increases your liability limits beyond the minimum required by law.
Important Considerations:
* Deductibles: Most rental car insurance policies have deductibles, which are the amounts you'll have to pay out-of-pocket before the insurance kicks in.
* Exclusions: There are usually exclusions, such as driving outside the specified area, using the car for business purposes, or allowing an unauthorized driver to operate the vehicle.
* Your Existing Coverage: Check your personal auto insurance policy to see if you have any coverage that overlaps with the rental car company's offerings. You may already have liability and collision coverage through your personal insurance.
* Credit Card Benefits: Some credit cards offer rental car insurance as a perk. Check your credit card terms and conditions to see if this is the case.
* Rental Car Company Fees: The insurance sold by rental car companies can be quite expensive. Weigh the costs carefully against your existing coverage and potential risks.
Recommendation:
Before renting a car, carefully review the insurance options offered by the rental company and compare them to your own auto insurance coverage. Consider the risks involved and make an informed decision about whether you need the additional coverage.
