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DO I ALWAYS NEED TO BUY INSURANCE WHEN I RENT A CAR?
Do I always need to buy insurance when I rent a car?
If you have fully insured your own vehicle, including collision and comprehensive coverage, and rent a vehicle for pleasure only (while on vacation, for example), you do not need to buy extra insurance from the rental company. In fact, in most states your basic rental fee by law will include liability coverage for damage or injury to others. But different rules apply when you rent a car for business purposes, so check with your agent for details.
If you do not have your own insurance, be aware that many car rental liability policies cover you only at the state's required minimum. Also, you should buy the collision and comprehensive coverage offered by the rental company for your own protection. Plus, do not buy a collision damage waiver (CDW) from the rental company assuming it is insurance. A CDW simply releases you from financial responsibility if you damage the vehicle you are renting, provided you comply with the terms of the rental contract. But those terms can vary considerably, and CDWs are not state-regulated, which means they are technically not insurance.
It's always a good idea to review your policy before renting a vehicle and, if necessary, contact your agent for clarification.
« BACK
» Car insurance guide:
 Why do I need car insurance?
What are the different types of policies & what cover?
Why and how are policies priced for different drivers?
How does where I live affect my premium?
What is "no-fault" insurance?
Do all states require some kind of liability insurance?
Why would my insurer cancel my policy?
How do I keep my insurance company from canceling my policy?
What steps can I take to reduce my rates?
How does adding drivers to my policy affect my rates?
Who's watching the insurance companies?
Do I always need to buy insurance when I rent a car?
What happens when I loan my car to someone?
Am I covered for natural disasters or "Acts of God"?
What actually happens when I report an accident?
Do I need special insurance for a classic car?
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