Have you ever found it difficult in deciding to accept the car insurance supplement when renting a car? It’s an often asked question at every NY insurance agency and for good reason, the rental company is silent as to whether or not you really need the coverage.
Those who pay for the coverage through a rental car company will likely notice that it can be expensive. But, if you already have coverage in place for your owned car, you likely don’t need it.
You may want to decline the offer for rental car insurance if you have your own auto policy or are included as a driver on a policy that includes adequate liability, collision and comprehensive coverage because your personal policy will follow you to rented vehicles.
- Liability/Property Damage – As mentioned, the same liability and property damage coverage carried on your own personal policy will extend to you while driving a rental car. Bodily Injury Liability covers for injuries and Property Damage coverage protects you for damage to other vehicles and property.
- Collision Endorsement – This endorsement will cover your rental vehicle for accident related damage to that vehicle.
- Comprehensive Endorsement– This endorsement covers you for comprehensive perils such as vandalism, theft, hit a deer, hail, etc. that damage your rental car.
Many credit cards provide rental car insurance for using that card for your rental. Unfortunately, liability, personal injury and personal effects protection is often not covered. Thus, relying on rental car coverage through a credit card may not be in your best interest. Especially regarding liability coverage, it is so important. With no liability coverage, you are completely unprotected against huge judgments that often occur after a serious accident with injuries.
Don’t have car insurance and want to maximize savings? You can use your credit card that gives physical damage coverage and pay for the rental car agency liability coverage supplement.
Make sure to read up on your credit card terms and conditions before using it for its rental insurance coverage. Sometimes there are exclusions for certain vehicle types and the types of damage it will cover. There can also be property damage limits and capped rental periods.
If you currently have a NYS personal vehicle policy with adequate liability, collision, and comprehensive limits you should be okay to decline the rental insurance coverage at the counter.
People with older cars that don’t carry much value often opt for liability-only policies that do not cover physical damage. If your personal insurance policy doesn’t include comprehensive or collision coverage or you carry high deductibles, it may be wise to at least purchase the physical damage coverage from the rental company. If you don’t have physical damage coverage on your own auto policy and regularly rely on rental vehicles, you might want to get some NY car insurance quotes to verify your cost in carrying comprehensive and collision coverage. Sure, it will cost more for your personal policy In could actually save you money overall if you subtract the expense for the rental insurance.
Unfortunately, most NY insurance companies will not extend your own personal policy coverage beyond the US or Canada. For those renting a car to drive outside of the US, purchasing coverage from the rental car company that covers driving outside of the US is a vital protection.
To sum up, those that hold a current NY auto policy with solid liability and physical damage protection shouldn’t need to buy the policy at the rental counter. If you don’t have comprehensive and collision coverage on that policy you should take the rental car agency option for physical damage protection.
If you currently don’t have your own personal auto policy, you’ll need to buy the full protection option offered at the rental company that covers both liability and physical damage or use your credit card physical damage protection and purchase the liability coverage at the rental agency.