For most people, renting a car is rarely a cause for joy or excitement. In fact, most people tend to dread the process of renting a car, and for good reason. Most car rental companies make the process extremely difficult. One specific area of confusion revolves around car rental insurance.

Should you get car rental insurance? Does your personal insurance cover anything? What is or isn’t covered? It can be an understandably confusing endeavor. To help clear the air we’ve put together a quick overview to demystify car rental insurance.

Rental Insurance options vs Your Own insurance

All car rental companies will offer some sort of insurance coverage for your car rental, but it is up to you to decide if you want to use theirs or your own.

Most car rental companies offer similar insurance coverage options. You’ll likely be presented with coverage that includes some of the following:

  • A loss or collision damage waiver to protect your rental vehicle
  • Liability coverage for potential damage to other vehicles
  • Personal accident insurance to cover medical costs for both you and your passengers

If you already have your own car and health insurance it would be wise to call your providers to learn more about your coverage. Some car insurance polices also cover car rentals and your health insurance should handle any personal injuries from an accident. Once you have that information in hand, you can make a more informed decision on what coverage you need from the car rental company.

Credit Cards

Most people know that they can earn points or miles on their credit cards that can be used towards various rewards. Did you also know that some credit cards also provide car rental insurance? All you have to do is use your credit card to pay for the rental and the rental is in your name, you can use your credit cards coverage.

Not all credit cards offer coverage, so you should always contact your credit card company to get the correct details on their insurance options.

3rd Party Insurance options

You can also research the available 3rd party car rental insurance options that exist. For example, Allianz offers a Rental Car Damage Protector insurance option that can provide exactly what you need for all of your car rentals. This could be a great solution for someone that doesn’t currently have car insurance of their own and wants an alternative to the car rental company.