Have you been struggling to come to terms with the relevant insurance cover for the rental car or want to know if you need to have an insurance coverage for a rental car? Whatever lingering questions you might have about rental car insurance coverage, we’ve curated this video to provide compelling answers that are sure to provide total clarity about car rental insurance. For starters, there are two main types of auto insurance on any rental car:
1. Collision damage insurance (on the rental car you’re driving)
2. Third party liability
a.Property damage on other cars or properties
b. Bodily injury to a person.
For US/Canada driver licenses, all rentals in the US and Canada usually come with no collision insurance included in the rate. This means that to rent a car, you’ll need to: • Buy an auto insurance cover from the rental company, • Use a credit card insurance, or • Use your own insurance from an insurance company. However, if you or your primary driver has a foreign driver license, it will provide you with a full insurance coverage which will be included in the rental rate. (We’ll be happy to provide the best rate if you do have a foreign driver license.) All the benefits that the primary driver has will also apply to all additional drivers on the contract. So, if you are planning to travel with a friend that has a foreign driver license, it is advisable to pick up the rental in their name and then add additional drivers.
1. Your Own Insurance!
The best and cheapest option will be using your own insurance policy from one of the major insurance companies. One of the benefits you enjoy when you hold an insurance policy or are on your family’s or company’s auto insurance policy is that you are covered on a rental car, without having to add the rental car to the policy. You simply have to check with your provider to know if you’re covered on car rental, and also check that there is no limit to time of coverage per rental agreement (For long term rentals, if there is a limit of 30 days on the policy, you will need to use a company that renews their contract every 30 days, and perform a new rental agreement check with the insurance provider.)
2. Credit Card Insurance
Credit card insurance provides coverage on the rental car that you are driving (collision/loss damage). Most credit card companies provide collision coverage up to 30 days per contract. They often provide $25k – $50k coverage on collision/loss damage, but seldom provide coverage for third party liability. Please be informed that there are certain cars that credit card insurance does not provide coverage for. So, it is better to check with the provider. (For long term rentals, if there is a limit of 30 days on the policy, you will need to use a company that renews the contract every 30 days, and also perform a new rental agreement check with the insurance provider.)
Car rental companies provide liability coverage for all of their vehicles as required by local laws. However, in some states, the coverage provided by them only applies after the renter’s personal insurance has been used to cover all that it can. For instance, the New York state law requires that motorists carry a minimum amount of liability insurance of $25,000 for bodily injury to one person, $50,000 for bodily injury to all persons, and $10,000 for property damage in any one accident. A mandatory "no fault" coverage of $50,000 is also required. In New York, rental vehicle companies are also required to insure their rental vehicles for the minimum amount of liability protection required by law. Sometimes, additional liability protection can be purchased through the rental car company directly, if desired. It will cost you about 12$-18$ a day. On the other hand, the Liability Insurance Supplement (LIS) provides a much higher coverage, providing you with up to $1,000,000 (up to $2,000,000 in California and Florida). There are different minimums, and coverage depends on the state and car rental company. So, it is better to check for each rental.
Non-owner car insurance policies provide the minimum coverage required by the state, as well as some optional add-ons. While most major insurers offer non-owner car insurance, it costs between $200 and $500 per year. Consider getting a non-owner car insurance if you don’t own a car but plan to frequently rent or borrow one.
Non-owner car insurance covers:
1. Injuries to other drivers in accidents that you cause
2. Property damage, excluding damage to the vehicle you’re driving
3. Accidents caused by uninsured/underinsured motorists (required in 20 states)
4. Medical bills resulting from accidents (required in 16 states)
Our car rental insurance cover includes:
1. Liability: 15-17$ per day or 450-550$ per month
2. Collision/loss damage waiver: 8-9$ per day or 240-300$ a month The choice is yours to select your preferred insurance cover.
Here is a summary:
1. Your own insurance
2. Credit card insurance + non-owner insurance
3. Credit card insurance + minimum liability by the law
4. Collision insurance by the company (8-9$ a day) + minimum liability by the law
5. Collision insurance by the company (8-9$ a day) + non-owner insurance
6. Non-owner insurance + take full responsibility on the rental car
7. Only minimum liability by the law + take full responsibility on the rental car
8. To use yours or your partner’s foreign driver license with full coverage included.
Remember that the most important coverage is the liability insurance, as it is difficult to gauge the volume of the cars, people, and properties involved. In the event that an accident occurs, if you don’t have a collision car insurance, the rental company will bill you for the damage you caused, and if you don't pay the bill, you may be blacklisted. Disclaimer: N.S Car Rental does not take responsibility for the information contained in this video as there are many variables in insurance policies, state insurance laws, and insurance coverage subscriptions. If you purchase a rental car insurance, it will appear on the contract provided to you. Otherwise, you’ll need to check with the insurance company/Credit Card Provider. This video is just to give you an explanation of how things work. Thank you for choosing States Car Rental!