Do I Need Rental Car Insurance?

Do I Need Rental Car Insurance?

In New York State, your personal auto insurance policy (PAP) covers a rental vehicle under the liability section of your PAP.  Therefore, there is no deductible applied if you damage the rental vehicle.  In other States, it’s covered under the Collision portion of the policy (assuming you have collision coverage) and the deductible applies.  So the question we are frequently asked is “Should I buy the Damage Waiver coverage.  While the PAP covers the rental vehicle, there are some other costs associated with the rental car that may not be covered.  Loss of Use.  While the car is being repaired, the rental company is losing money every day they can’t rent the car.  They may charge you for this down time.   The labor rate or the parts for the car may exceed what your insurance company will allow.

The liability portion of the PAP will provide excess liability over the rental car liability.  If you don’t own a car, you should purchase the liability and the Damage Waiver coverage.  If you own a car, you need to consider the possibility that there may be some administrative costs associated with repairing the car and decide if it makes sense to purchase the Damage Waiver coverage.

Many credit card companies also provide coverage for rental cars if the credit card is used to rent it. Depending on the type of card you have, the credit card may act as secondary coverage or primary coverage.  Contact your credit card company to determine how it will respond.

There are four typical insurance coverage options that are available from a rental company, including:

  1. Damage waiver – will cover the cost for collision or theft, as well as waving other administrative charges that are often not provided by personal auto insurance policies.
  2. Liability coverage – is available in varying limits depending on the rental company.
  3. Medical coverage – will cover the medical costs associated with an accident in the rental vehicle.
  4. Personal effects coverage – will cover your personal property that is damaged or stolen from a rental car.

For all of your insurance needs to ensure you are covered from risks associated with a car rental in Tarrytown or Westchester County, contact Allan Block Insurance.