1. Personal Auto Insurance Coverage:
- Check if your personal auto insurance policy extends coverage to rental vehicles. Some policies may provide limited liability and physical damage coverage for rental cars, while others may require additional coverage or endorsements.
2. Rental Company's Insurance:
- If you decline the rental company's insurance coverage, you may be responsible for the damages caused to the rental car. The rental company may hold you liable for the repair or replacement costs.
3. Collision Damage Waiver (CDW):
- CDW is an additional coverage offered by rental companies that provides financial protection against damages to the rental vehicle. If you had CDW, the rental company may cover the repair or replacement costs, subject to the terms and conditions of the agreement.
4. Liability Coverage:
- If you cause damage to third-party property or injure someone in an accident, your personal liability coverage from your auto insurance may come into play. Check your policy for coverage details.
5. Uninsured Motorist Coverage:
- If the other driver is uninsured or underinsured, your uninsured motorist coverage may provide protection for bodily injury or property damage sustained by you or your passengers.
6. Out-of-Pocket Expenses:
- You may be responsible for any costs not covered by your insurance or the rental company's coverage, such as medical bills, towing, storage fees, or loss of use of the rental vehicle.
7. Legal Consequences:
- Depending on local laws and the severity of the accident, you might face legal consequences such as fines, citations, or even a lawsuit if you're deemed liable for the accident without adequate insurance coverage.
It's highly recommended to carefully review the rental car agreement and consider purchasing additional insurance coverage to protect yourself from financial liability in case of an accident.
