Vacation, business travel or move-in weekend at your child’s college may find you behind the wheel of a rental car. If so, you may also find yourself at the rental counter wondering whether you really need the rental insurance coverage that is offered. You may not. You might also assume your credit card coverage will fully meet your needs. It may not. Too many travelers have no idea what is covered in a rental situation and may make a costly mistake.

Are you now thinking: Am I covered for damage, theft and loss of use of the rental? Liability for injury to others while in the rental car? What if my personal effects are stolen or damaged?

Know your current coverages

Your personal auto coverage usually does cover rental car coverage. The limits and deductibles on your policy still apply to your rental car so long as you drive it for personal use and have full coverage for your vehicle. If it’s a commercial rental (moving truck), your personal car insurance coverage may not apply. If you’re traveling on business, you need to check the business auto policy that applies.

Planning a trip abroad? Some companies provide worldwide coverage, but not all. However, some countries require that you purchase local coverage regardless of whether you have personal auto insurance.

Your renters or homeowners insurance

Off-premises coverage will cover your personal property if damaged or stolen in a rental car. Keep in mind that the loss is subject to your homeowners’ deductible.

Credit Card Coverage

Protection provided by credit card companies can be tricky. Many credit cards include some collision and theft protection, but the benefits are usually secondary to personal auto insurance or the coverage sold by a car rental company. Don’t make the mistake of assuming that one size of coverage fits all card brands. Some higher-end charge cards might be better, but other card levels may offer little protection. Examine each card document carefully. Finally, note that credit cards tend to mostly offer damage, collision, and theft coverage, if they offer anything at all. Personal liability (injuring drivers in another car, hitting a pedestrian or crashing into a store front) and personal effects are generally not covered. Again, carefully read the documentation that came with your specific credit card and understand the extent of coverage it provides.

Give us a call

Give us a call at MAGIS Insurance Group before you hit the road. We are happy to review your current coverages with you and answer your specific questions so that you can drive off in your rental car with peace of mind.