Before you rent a car, contact Ferranti-Graybeal Insurance to find out how much collision and liability coverage you have on your vehicle. In most cases, the coverage and deductibles you have on your personal automobile insurance policy would apply to a rental car, providing it is used for pleasure and not business.
If you don't have comprehensive and collision coverage on your own car, you won’t be covered if your rental car is stolen or if it is damaged in an accident. If you plan to rent a vehicle frequently, your best bet is to purchase a non-owner auto liability insurance policy from Ferranti-Graybeal Insurance.
Decide Before You Ride
The best time to make the decision about whether you will need extra rental car insurance is before you’re standing at the car rental counter. Read on to learn about car rental insurance considerations and what you need to know to make sure that you’re covered.
It’s not uncommon for rental car agencies to offer you the opportunity to purchase additional auto coverages, but do you need them? Here are some basic coverage options:
Collision Damage Waiver (CDW), or Loss Damage Waiver (LDW), relieves you of financial responsibility if your rental car is damaged or stolen. If you have comprehensive and collision on your own car, you most likely don’t need to purchase CDW from the rental car agency.
Additionally, your credit card company may include some collision and theft protection if the rental car is paid for with your card. This includes coverage for “loss of use,” which refers to the amount of money a rental car company can stand to lose while a car is being repaired. If your credit card doesn’t offer coverage for loss of use, you may want to consider purchasing CDW from the rental agency.
Liability insurance provides excess liability coverage of up to $1 million for the time you rent a car. Rental companies are required by law to provide the minimum level of liability insurance required by your state. Generally, this doesn’t offer enough protection in a serious accident. If you have adequate liability coverage on your car or an umbrella policy on your home/auto, you may consider forgoing this additional insurance.