People who don’t own a vehicle are recommended to purchase insurance from the rental car company. However, many credit cards offer rental car insurance coverage for consumers who use the card to book the rental. Make sure to review the coverage offered by your credit card company.
But regardless of whether someone has an existing policy, or purchases one from a rental company, you’ll need to decide if you want to add supplemental liability and personal effects coverages. These are both strongly recommended, or you’ll be on the hook for a lot of money in the event of a loss.
For the most comprehensive coverage, you’ll want to make sure you have the following:
Collision Damage Waiver
Protects the renter from paying for a damaged or stolen car. Sometimes also known as loss damage waiver, this means that the rental company waives its right to pursue you for damage.
This waiver may be redundant if you have a car insurance policy with a rental car endorsement and/or coverage through a credit card.
Supplemental Liability Insurance
Rental car liability insurance covers the renter for bodily injury or death. This coverage tops up the mandatory minimum liability insurance set to between $1 and $2 million.
Personal Accident Insurance
Covers the renter and all passengers inside the car for personal injuries and medical expenses.
Personal Effects Coverage
Covers the renter against loss, theft or damage to their personal items. If you have home insurance, there’s no need to buy personal effects insurance from a rental car company because it provides coverage for any possessions you have in the car.
The best way to get a cheap rental car insurance rate is to speak with a broker or agent after completing a quote on LowestRates.ca.