Do I Have Insurance When I Rent A Car?
Do I Have Insurance When I Rent A Car?
Not necessarily. However, there are several avenues for you to have insurance when you rent a car as a car accident lawyer can explain further:
First, your existing auto insurance policy may provide coverage for you when you rent a car. Your policy may extend liability, collision, and/or comprehensive coverage to rental vehicles, but it depends upon your policy and your insurance provider. You should contact your car insurance company to verify the extent of coverage your policy provides for rental vehicles.
Second, some credit card companies offer rental car insurance coverage as a benefit to their cardholders if the card is used to pay for the rental. Most of the time, the type of insurance offered is secondary in nature, which means that it is only available after your underlying or primary auto insurance policy has been exhausted. Moreover, the coverage and eligibility requirements vary by card issuer and card type, so you should check the terms and conditions of your credit card agreement before going this route.
Third, most rental car companies offer insurance options that you can purchase when you rent the car. The options offered are usually Collision Damage Waiver (CDW) also known as Loss Damage Waiver (LDW) insurance, or Personal Accident Insurance (PAI). These policies are intended to protect you from financial responsibility if your rental car is damaged or stolen.
In practice, CDW and LDW offer similar coverage and may be used interchangeably by rental car companies. However, you should always review the terms and conditions of the insurance policy to understand what exactly is covered, what is not covered, and if there is a deductible as our friends at Kiefer & Kiefer would recommend. CDW/LDW typically cover the costs associated with damage to the rental vehicle, including collision, vandalism, theft, etc. It sometimes also extends to any loss of use charges of the rental car company while the car is out of use due to repair. However, CDW/LDW may not cover certain types of damage to the rental vehicle, such as damage resulting from driving on unpaved roads, driving under the influence of alcohol or drugs, or certain types of negligence (such as if you left the keys in the car and it was stolen). CDW/LDW is usually charged as an additional cost for each day you rent the vehicle and can vary depending upon the rental car company, the location of the rental, and the type of vehicle rented. Some CDW/LDW policies also have a deductible.
PAI is another type of insurance offered by rental car companies. The cost of PAI varies depending upon the rental car company, the location of the rental, and how long you rent the vehicle. PAI offers coverage or medical expenses if you or your passengers are injured while using the rental car, and it is usually a daily fee for each day you have the rental. These medical expenses may include hospital bills, ambulance fees, and other necessary medical treatment. It also typically provides coverage should you and/or your passenger(s) suffer from accidental death or dismemberment resulting from a car accident while using the rental vehicle. This benefit would either be paid to you or your designated beneficiary(ies). Be sure to review the policy for any exclusions and limitations of the PAI policy. For example, PAI coverage may be limited to certain types of injuries or medical treatments and there may be restrictions based on the driver’s age or health status. Before purchasing PAI coverage, you should look to see if you already have coverage for medical expenses and accidental death or dismemberment through your personal health insurance or even your travel insurance policy. Most health insurance policies provide coverage for medical expenses incurred in a car accident.
In sum, you should always review available insurance coverages prior to renting a vehicle so that you can ensure that you are fully covered in the event of an accident for not only bodily injury, but also for property damage. However, if you get into an accident, reach out to a lawyer to help with these issues.
