When purchasing a car rental, the car rental company will offer you the option to purchase additional coverages in the case of an accident. These most common kinds of additional coverage include:
- Collision damages waivers, which while technically not a form of insurance, are a way to cover property damages or loss that occurs to the rental vehicle while in your care. Coverage for collision damages excludes when the damage occurred to due the driver’s own reckless driving, or when someone other than the driver who rented the vehicle was operating it.
- Liability coverage, which will cover the property damage and medical costs of the thrid party injured in an accident for which you, the rental car driver, were at fault or partially at fault for. This form of coverage overlaps with your personal car accident insurance, if you have one. However, you should always confirm with your insurance agent, first.
- Personal injury accident insurance, which will cover the costs of injuries sustained by you, the driver of the rental vehicle, and any of your passengers. If you or your passengers have personal injury insurance, car insurance, or medical insurance, these coverages will likely overlap.
- Personal affects coverage, which willl cover the costs of items lost or stolen from inside the vehicle. This kind of coverage is typically the least important, unless you don’t want to pay your other insurance coverages a deductible to recover your losses.
If you have any other form of insurance coverage that may also cover these costs, it is important to always check with your insurance agent to understand what coverage might overlap, if any.
These different kinds of additional insurance coverages might be sold separately or packaged together as a bundle insurance package. The cost of these different kinds of insurance coverages might be small, however, charged daily, depending on the durantion of the car rental period, the costs can quickly add up to be very expensive.
It is common that many car rental buyers forgo the optional additional insurance coverage. However, in the case that an accident does happen, this could defer the costs to a driver’s personal car insurance and out of their own pocket.