Insurance 101: Do You Need Rental Car Insurance?

Travel plans usually involve a lot of moving parts: research, booking, packing and, sometimes, renting a car. Many rental car companies will try to sell you on the insurance they offer, and if you don’t have a good understanding of your current coverage, you may end up spending money you don’t need to.

Do you need rental car insurance?

If you already have auto insurance with Utica National, it may cover renting a car, but coverage varies depending on the state you live in. To be sure, we recommend checking with your independent agent before renting a car for more detailed information about how you are covered.

If you don’t have car insurance but you do have a credit card, you may be covered. Many credit card companies offer rental car insurance just for being a cardholder. Again, to be sure, we recommend calling your credit card company to learn more about your coverage and limitations.

When is purchasing rental car insurance the right fit for you?

• You don’t have car insurance: You aren’t required to have car insurance in order to rent a car, but you do need some level of coverage. In this case, purchasing rental car insurance from the rental agency is likely your best option.
  
  
• Your auto policy has high deductibles: Depending on the type, rental car insurance often comes with little to no deductibles, so it may make more sense financially in the event you have to file a claim.
  
  
• You are traveling outside the U.S. or Canada: Most auto insurance policies will protect you in the U.S. and parts of Canada, but it is important to do your research and speak with your insurance agent before traveling to be sure. If you plan on renting a car in a country where your personal insurance does not cover you, consider opting for rental car insurance.

Insurance policies, coverages, and rates vary across different carriers and locations, so be sure to contact your insurance agent for the most accurate information regarding your policy.

Click here for more information about coverages available as part of an auto policy with Utica National.