Rental car companies generally provide forms of car insurance for their vehicles. You may be able to look at different rental car options using Citi Travel, which offers opportunities to pick from many rental car options to suit your preferences. For short stints, their daily fees may not be so expensive, but if you’re using the rental for a few weeks, they might add up. Some of their options may be available à la carte, so you can pick and choose how much coverage you want and which items you want covered. Many CDWs and LDWs also allow you to avoid paying a deductible.
Personal auto insurance
If you have full coverage on a personal vehicle, you may be able to opt out of additional rental car coverage. However, you should make sure that your policy extends to where you are traveling and the vehicle you are renting. You may still choose to add on insurance.
Credit card
Some credit cards offer rental car coverage as part of their cardmember benefits. In the case of damage to your rental, the card would cover damages, and you might avoid involving your auto insurer. You might still have a deductible for any damage to the vehicle, however. Check the terms and conditions to see if your card offers this benefit and what the details are.
What may not be covered
There are some instances when you may not be covered, even if you have rental car insurance. This will vary, depending on your insurance policy.
In some cases, your personal auto insurance, the coverage offered by the rental car agency and the rental car coverage insurance offered by your credit card will vary as well, so it’s important to carefully check your policies to make sure you’re clear on what’s covered and what isn’t. Here are some examples of things that may not always be covered:
- Off-road use: If damage occurs when operating the vehicle off-road, you may not be covered.
- Unauthorized drivers: A CDW or LDW for your rental car may not cover damage or injury when an unauthorized driver is behind the wheel.
- Unlawful behavior: In general, if you’re breaking the law, like driving under the influence, you may not be covered by your rental car insurance.
Tips for choosing coverage
Here are some additional tips for choosing an insurance plan:
- Check with your existing providers: Call your insurance and credit card companies before you rent your vehicle to understand your existing coverage and to see if you need to add another plan.
- Check with the rental agency: Paying for the same thing twice may feel wasteful, so you may want to check with the rental agency to make sure that any additional coverage you purchase isn’t repeating another policy that you already pay for.
- Total cost: You may want to compare the total cost of renting a car with different insurance.
Final takeaways
Depending on your personal auto insurance coverage or your credit card benefits, you may not need to take out an additional insurance policy when you rent a car. However, there are some exceptions, and there also may be benefits to opting for additional coverage.
Do your research before opting for specific car rental insurance policies. Before you make a final decision, contact your existing auto insurance provider, your credit card company and your car rental company.
Disclosure: This article is for educational purposes. It is not intended to provide legal, investment, or financial advice and is not a substitute for professional advice. It does not indicate the availability of any Citi product or service. For advice about your specific circumstances, you should consult a qualified professional.
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