Should I Buy Auto Insurance When I Rent a Car?

People rent cars for various reasons. Usually, they rent cars when they travel for business or pleasure. On the home front, people often rent cars when their personal vehicle is in the shop getting repairs or when they’ve been in a car accident and their car was totaled and they’re in between vehicles.

In Texas and all states, you can’t drive without valid automobile insurance and this applies to all vehicles, including rental cars. Since rental car companies do not automatically insure their vehicles, but insurance is required, you’ll have to ensure the rental car is covered one way or another. Do you need to buy auto insurance when you rent a car? In this article, we go over the details of insuring a rental car and how that process works.

Does Your Insurance Cover Rental Cars?

Whenever you have to rent a car, the first question is, do you have auto insurance? If you do have your own policy, the next question is, does it cover rental cars? Some policies do, some do not. If yours does not, we recommend adding rental car coverage to your policy.

Some insurance policies will cover rental cars if they’re stolen or damaged, so it’s worth looking into, especially if you anticipate traveling. However, do keep in mind that if you use your policy to rent a car, if something does happen to the rental, you will have to cover your deductible out of pocket.

When You Don’t Have Auto Insurance

Let’s say you don’t have auto insurance. Maybe you commute to work via bicycle or you take the bus, or you’re in between cars for now. What happens then when you try to rent a car? Well, you still have to insure the rental car. If you don’t have a car, you probably don’t have car insurance, so in that case, you’ll have to buy insurance directly from the rental company. Rental car companies make it really convenient, so it will be easy.

Additionally, if you use a credit card to rent the car, your credit card company may provide you with some coverage, however, it will be secondary coverage. The auto insurance policy will be used first.

Next: Who is Covered By My Car Insurance Policy?

If you need to file a car accident claim, contact The Zendeh Del Law Firm, PLLC!

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