You stand at a rental car dealership with you in a long line. You get great car prices for the week, you are ready to go on vacation with your family. You will then be given a billboard with a scary car rental contract filled with confusing insurance options. Suddenly you would like to spend less time packing and more time on car rental insurance.

Since car rental insurance is not a routine for many of us, it is easy to get confused or overwhelmed when choosing this type of coverage. Read on to find out some basic facts about rental car insurance, whether you need extra coverage or not outside of your personal car insurance policy.

What is Car Rental Insurance?

Do not confuse with rental compensation coverage, which is an addition to your car insurance policy that provides compensation for a rented car if your car is being repaired as a result of a covered loss or accident. when you rent a car directly from a car rental company like Enterprise Rent-A-Car. When you rent a car at the airport or other place of rent, you will be asked if you want to add insurance to your rent or if you want to opt out.

Do you need rental car insurance?

The most common question when it comes to renting a car for domestic travel is the following. The answer is: it depends. You want to make sure you և your rental car is insured, but you also do not want to pay for unnecessary duplicate insurance coverage that could double your rent.

How To Find Out If You Need Car Rental Insurance Coverage

The first step is to check your car insurance policy or contact your carrier to see what car rental coverage may already be included in your personal car insurance policy. If you have comprehensive և liability coverage on your personal vehicle, coverage usually applies to your rental vehicle in the United States.

If you rent a car in the US for the same price as your personal car, then your car insurance will probably be adequate for rent. But if you go for a beach weekend with a set of wheels like the Corvette Stingray and leave your 2008 Subaru Forester at home, the extra car insurance offered by the rental company might be a good idea.

Does my credit card provide car rental insurance?

You should also check with your credit card company, the credit card that you will use to rent your car. If there are gaps in your personal automation policy, your credit card company can provide secondary coverage.

GEICO can help with travel insurance.

Airport signs for passenger transport և rental carsWhat is covered by a typical car rental policy?

Most rental companies usually have a short, predictable package of rental car insurance offers. Know your rental company policy before you get to the counter. Check your personal car insurance policy to see if you are already properly insured and able to opt out of the coverage offered by your rental company.

Car rental insurance is usually divided into the following coverages:

  • Liability coverage
  • Personal accident insurance
  • Collision Damage Denial (CDW) / Loss Damage Denial
  • Personal effects coverage

Insurance you may already have

Liability coverage

This is a major component of most car insurance policies. If you have the appropriate liability coverage on your own car (check with your insurance provider), you can choose to skip this one.

Personal accident insurance

This covers your medical expenses in the event of a car accident. As long as you have personal injury protection or medical coverage in your car policy և reliable health insurance, you may not need this coverage.

Car rental covers you may need

Collision Damage Denial (CDW) / Loss Damage Denial

This is not an insurance product, but rather a waiver that transfers financial liability from you to the car rental company in the event of damage or theft. In many cases, collision repair also provides “loss of use” coverage if the rental car company charges for the time the damaged car can not be used as it is being repaired.

Personal effects coverage

If you have a landlord, tenant, or apartment policy, your personal belongings will be mostly covered, even if they are stolen from a rented car. Review your policy documents to make sure before choosing or rejecting this coverage.

Next steps. To learn more about your rental car insurance policy, call us at 1-800-841-0728 or view your policy documents at geico.com. Or, if you are looking for a new car policy, compare car insurance և to see why GEICO is the right choice.