You’re standing at the rental car counter when the agent asks that dreaded question: “Would you like the rental car insurance?” Suddenly, your brain starts racing. Doesn’t my regular policy cover me? Am I about to waste money? Can I phone a friend? We’ve all been there, and the good news is, you probably don’t need to panic. Let’s unpack what’s actually worth paying for and what’s just a clever upsell.
Technically, yes, you do need insurance to rent a car. But the real question is what kind of insurance you need. For most people, your personal auto policy already has you covered. The coverage you already pay for: liability, collision, and comprehensive typically extends to rental cars. That means you can safely skip most of what the rental counter tries to sell you. The only time it might make sense to say yes is if you don’t own a car, have minimal coverage, or are renting outside the U.S.
In most situations, your own car insurance is enough. If you have comprehensive and collision coverage, it’ll protect your rental car the same way it protects your own. Liability insurance, the part that covers damage you cause to others, also follows you to the rental. If you have renters' or homeowners insurance, that can even cover your belongings if they’re stolen from the car.
So, what’s the deal with all those optional add-ons? The Collision Damage Waiver (CDW) sounds fancy, but it isn’t really insurance…it’s just a promise that the rental company won’t charge you for certain types of damage. It’s pricey and usually unnecessary if you already carry collision and comprehensive coverage. But here’s where it gets tricky: even with your own policy, the rental company can still charge you for something called “loss of use.” That’s the income they lose while the car is being repaired and can’t be rented out. Your personal policy may or may not cover that cost, so it’s worth checking with your agent before your next trip.
The Supplemental Liability Coverage usually duplicates what your regular auto policy already provides, and Personal Accident Insurance just overlaps with your health insurance or personal injury protection. Finally, Personal Effects Coverage might reimburse you for stolen belongings, but if you have renters or homeowners insurance, you’re already protected there, too.
The bottom line: most drivers don’t need to buy extra insurance from the rental car company. Keeping your personal policy up to date is a far better (and cheaper) way to stay protected. Before your next trip, take five minutes to look over your policy and confirm what’s included and ask specifically whether it covers loss of use. That little bit of homework can save you a lot of money and maybe even a little sweat at the rental counter.
If you’re unsure whether your coverage has you fully protected, don’t guess. Glidewell’s Renewal Protection Plan offers a personalized action plan that shows exactly what you have and what you might need. It’s fast, it’s simple, and it helps you protect what matters most…no panic required.
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