If you're renting a car on your trip, it's wise to protect yourself against any damage or repair in the event of an accident. While no one wants to think about having to deal with a car accident during their travels, being protected can give you peace of mind and provide a vital financial safeguard if an accident were to occur in your rental.
Car rental insurance is typically offered to you by the car rental insurance company when you pick up the car. However, there are other options to consider that can give you rental car collision insurance as well as other benefits, such as travel insurance.
What Is Rental Car Insurance?
Rental car insurance protects you against the expenses related to physical damage and repair of the rental car in the event of an accident or theft of the vehicle.
With car rental insurance, you’ll be covered for damage or theft of the vehicle and costs related to the damage and injury sustained by other people if the policyholder causes an accident.
Do You Need Insurance on a Rental Car?
Rental car insurance is highly recommended for those who are renting a vehicle during their travels to keep you protected against a substantial financial burden if something were to happen to the car.
Depending on the severity of the damage or the make, model, and age of the vehicle, you may find yourself responsible for tens of thousands of dollars in repairs or replacement in the event of an accident or theft without proper insurance coverage.
Travel Insurance With Rental Car Coverage
Did you know that many travel insurance policies include rental car coverage or offer this coverage as an optional add-on? This means you can protect your trip costs as well as secure car rental collision coverage with just one policy.
Travel insurance can provide insurance for rental cars as part of the policy or as an add-on for an additional fee.
There are several travel insurance plans that offer rental car insurance already included.
Additionally, there are many travel insurance plans that offer rental car coverage as optional coverage, meaning you can add this kind of insurance for an additional fee.
What Does Travel Insurance for a Rental Car Cover?
Rental car insurance under a travel insurance policy can provide reimbursement up to the stated maximum benefit amount if your rental car is:
- Damaged due to collision, theft, vandalism, or a natural disaster
- The rental car is stolen and not recovered
There may be other certain stipulations you must follow for coverage, such as ensuring that you obtain all relevant information from the other party involved in the accident and reporting the incident to local authorities and the rental company quickly.
What Isn’t Covered By Rental Car Travel Insurance?
As with most travel insurance benefits, there are limitations and exclusions to be aware of when it comes to rental car coverage under travel insurance.
For example, some common exclusions can include:
- Any loss that occurs as the results of driving under the influence
- Failure to report the loss or accident to local authorities or the rental car company
- Any loss that occurs from street racing
- Any loss attributed to mechanical failure or breakdown of the vehicle
- Any loss caused by gross negligence by the driver
Travel Insurance with Rental Car Coverage vs Standard Rental Car Insurance
It is important to understand the difference in benefits between standard rental car insurance and travel insurance with rental car coverage. Standard rental car insurance can be an expensive add-on to your car rental, and more importantly, it doesn't offer financial protection against trip delays, interruptions, or cancellations. Opting for a travel insurance plan that includes rental car insurance is typically more cost-effective, provides better coverage, and is usually at a lower price than purchasing it directly from a rental car service.
Here is a clear breakdown of the difference in coverage between the two options:
| Benefits | Standard Rental Car Insurance | Travel Insurance with Rental Car Coverage |
|---|---|---|
| Average cost per week | ~$150-300 | ~$50-95 |
| Trip cancellation, delays, and interruptions | No | Yes |
| Medical coverage | No | Yes |
| Lost or Delayed Luggage | No | Yes |
| Missed Flight Connection | No | Yes |
| Rental Car Coverage | Yes | Yes |
Rental Car Collision Travel Insurance Tips
Here are some helpful tips to remember when it comes to car rental collision insurance under travel insurance plans:
- Rental car collision insurance is technically not insurance, rather it's a collision damage waiver.
- If you don't have comprehensive insurance or car rental insurance, it's wise to have a travel insurance plan with rental car collision insurance.
- Always read the travel insurance policy documents as coverage specifics vary.
- Compare the insurance that you already have through homeowners and auto insurance to avoid getting unnecessary coverage.
Get Travel Insurance Through VisitorsCoverage
Securing the right travel insurance plan can provide you with valuable protection of your travel-related expenses as well as rental car collision insurance.
Have questions? Contact our Customer Success Team for further assistance or compare trip insurance plans to find the right coverage today.
Frequently Asked Questions (FAQs)
Does my auto insurance cover rental cars?
Yes, but it is not recommended. If you have full coverage on your car insurance policy, and use the rental with the intent for personal reasons instead of business, your policy can typically cover rental cars to a certain extent. However, if you are traveling abroad, chances are that your auto insurance can’t cover your rental car. Additionally, there are limitations if you choose to go with your auto insurance, such as having to pay your deductible if you do get in a collision and would have to file a claim under your auto insurance. With filing a claim under your auto insurance, it could potentially raise the price of your auto insurance policy.
Can I be reimbursed for unused car rental days if I have to cut my trip short?
Yes, travel insurance may cover the cost of the days you did not use your car as long as it is both a covered reason and that you included your car rental in the total trip cost when purchasing an insurance plan. Covered reasons for a trip interruption typically include:
- Sudden illness, injury, or death of the traveler, a traveling companion, or a family member.
- A natural disaster that makes your destination unsuitable to be in.
- Terrorism or civil unrest
When should I buy trip insurance?
To receive the most comprehensive coverage, it is typically recommended to purchase trip insurance as soon as possible after making your first trip payment. Many time-sensitive benefits like pre-existing condition waivers and Cancel For Any Reason (CFAR) coverage are only available if you buy within 14-21 days of your initial trip deposit.
Can trip insurance also cover my flights and hotels?
Yes, trip insurance can cover any of your prepaid, nonrefundable costs, meaning anything that you can not get back if you have to cancel. Prepaid, nonrefundable costs include:
- Flight costs
- Prearranged transportation
- Hotel or stay accommodations
- Event tickets
- Tours
- Cruise costs
Can I extend my travel insurance if my trip gets longer?
Trip insurance coverage may be extended only if the entire trip is covered by the policy and your return is delayed due to unavoidable circumstances such as illness or natural disasters. This extension will terminate on the earlier of two dates: when you arrive at your originally scheduled return destination, or when the stated extension time frame in your policy lapses. Refer to your policy documents for specific terms and conditions.
Does coverage include personal belongings stolen from the car?
Yes, many travel insurance policies with rental car insurance may cover you if your belongings such as your baggage were stolen from the car. The travel insurance company may reimburse you for up to the amount you claimed on your baggage, however it depends on what the policy covers when it comes to theft.
What documents will I need to file a trip insurance claim?
The necessary documents you will need to file a trip insurance claim can be various items such as copies of your passport, medical bills, and receipts. However, each provider may have slightly different steps. Typically, your insurance company will let you know which type of documents they expect, but if they don’t specify, check your policy or reach out to their customer service team for guidance. The more information or documentation you provide, the better. Keeping clear records and acting promptly can help the process go more smoothly.
