Rental car insurance tips and considerations

Before departing on your vacation, check with your car insurance company and confirm your coverage, or obtain quotes for rental car insurance. Purchasing insurance coverage through a car rental agency can be up to 3 times higher than a private company.

When comparing quote, make sure to evaluate the following areas:

Liability Coverage
If at all possible, try to have the maximum liability coverage your insurance company offers. Liability insurance covers damages to another person if you are found to be at fault in an accident. There are two different kinds of damages: damages to another person’s property, and costs associated with injuries of another person. It is always a good idea to be adequately covered in case you cause these kind of damages.

Damages
The rental car companies offer “Loss of Damage” insurance or “Damage waiver” for about US$20 per day. This covers damages to the rental car, including collision, theft and other damages. This does not cover damages made to someone else’s car during your rental (third party damages). Your personal or business auto coverage normally covers this when you are renting a car. Check first with your car insurance agent.

Loss of Use
Loss of use of a rental car towards renting a replacement car.

Life Insurance
When paying for airline tickets with a Visa credit card, there is $500,000 life insurance included (i.e. for the flight risk). Check with your credit card company to see if they offer insurance options for car rentals too.