Daily Archives: March 1, 2023

Hey everyone.  Hope all is going well with everyone.  I wanted to write about this topic because it’s a question I get asked by people almost on a daily basis.  It’s one of the most frequently asked questions we get here at our agency.  When you go on a trip, whether it be a vacation, trip for work, etc a lot of you probably rent a car so you can get around easier.  What happens when you get to the rental car counter?  The guy or gal is 100% going to ask you if you want their insurance coverage.  I’ve worked closely with a lot of rental car companies and have a lot of friends that either used to or still work for rental car companies.  Every company’s employees are trained to ask every customer and sometimes it can be pretty confusing.  The choices they give you can be confusing, even for me and I’m in the insurance business!  So what do you do?  Which option do you go with?  Do you even need it??  The quick answer is yes and no.  Maybe you do and maybe you don’t.

Now that you’ve rolled your eyes and are about to close this window, before you do, please just hear me out.  It isn’t as cut and dry as you may think.  It’s largely going to depend on your situation and the auto insurance coverage you have.  Let me spell it out for you.

If you have full coverage on your car insurance, which means you have both comprehensive and collision coverage, then you don’t necessarily need it.  That will transfer over to the car you are renting as long as it is in the United States and Canada.  If you’re in another country GET THEIR COVERAGE.  Your car insurance will only extend in the United States and Canada.  That said, the only downside to not purchasing their coverage is it’ll hit your driving record if something happens and you’ll have to pay your deductible.  Just like you would with your own car.  The other item that isn’t covered is what’s called “down time” or “loss of use.”  Let’s say you get in an accident and the car has to go into the shop for a week.  The rental car company will still charge you for that week as if the car is still being rented by you.  Those are the big things but everything else is covered through your auto insurance if you have full coverage.

If you have liability only, get their coverage.  At least get the collision damage waiver that they offer.  In fact some rental car companies may make you purchase it to protect themselves if you have liability only.  One tip and a little thing you can do to get around it, is call up your insurance company beforehand and put full coverage on your car.  You can always take it off after you’ve gotten back and that could save you some money overall.

When is it a good idea to get the rental car companies coverage?  Well, great question and there are actually a few scenarios where I’d recommend it:

1. If you’re going on a short trip.  Rental car companies charge you by the day for their coverage.  So if it is a short trip of only 2 or 3 days, it could be worth it so you can just walk away and let them deal with it if something happens.
2. If you’re in high traffic/congested city where an accident is more likely to happen.  For example, New York City, LA, or where I’m at in the San Francisco Bay Area.  If it’s a place that has a lot of people, a lot of traffic, and can be confusing to navigate/you’re not familiar with it, it could be a good idea just to take their coverage.
3. Horrible weather.  My wife and I just went to Utah to visit some family and the weather was absolutely horrendous.  I’m talking below 10 degrees with snow falling.  I purchased their coverage because I’m not used to driving in those conditions and figured I’d rather make it the rental car company’s problem if an accident occured.
4. If you’re traveling for work.  If you’re renting a car for work I’d ask your company how they want to handle this.  It’s a work expense, so I’d recommend just purchasing the rental car company’s coverage since it’s not out of your pocket and that way if something happens it doesn’t have to go as an incident on your personal driving record.

Always remember, the coverage a rental car company offers you means you can just throw them the keys and walk away and make it their problem if something happens.  Hopefully this gives you some direction, but it’s all about what you’re comfortable with.  I typically don’t purchase it because I have full coverage unless it’s with one of the four scenarios I outlined above.  If you have additional questions, ask your insurance professional or shoot us a message.  Thank you all for your continued support and love!

Cheers -Ryan Bravo