Does my personal coverage cover rental cars?

If you’re going to rent a car, you’re going to need insurance. In general, if you have adequate insurance coverage on you own car, including collision and comprehensive, that’s all the insurance you’ll need. In addition, many credit car companies provide more coverage, when you use their card to rent the car.

However, you should contact you insurance agent and credit card company to determine your coverage limits and weather or not you are covered in the states you will be traveling to.

If you are lacking in any area, you would not need to increase the coverage on your own car, instead buy the additionally coverage at the rental counter.

If you don’t have collision or comprehensive coverage you should look at getting Collision Damage Waiver (CDW), also known as Loss Damage Waiver (LDW) or optional vehicle protection. CDW is not insurance, it’s coverage that relieves you of financial responsibility if your rental car is damaged or stolen. However, CDW may be voided if you cause an accident by speeding, driving on unpaved roads, driving while intoxicated or other illegally activities.

Note: In New York, collision damage is already included in the rental price and rental car companies are not permitted by law to charge extra for the CDW.

Personal Accident Insurance provides coverage to you and your passengers for medical/ambulance bills, but in most cases is not necessary, because it would be covered by your personal injury protection (PIP) under auto insurance or your health insurance policy.

Additionally liability coverage is also available, which provides protection for up to $1 million for the time you rent a car. By state law you cannot rent a car unless you are carrying the state required minimum liability insurance. However, these minimums are usually not enough to cover the expenses of a significant accident, and unless you are carrying an umbrella policy, we would recommend getting this coverage.

Finally, you can purchase personal effects coverage, which protects against theft of personal items in the vehicle, such as laptops, ipod or cash. However, you homeowners, renters insurance or personal article policy, minus the deductible, covers this, provided you have receipts or other proof of ownership.