Auto Insurance Coverage

Rental Car Insurance Options Worth Knowing About


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Basic rental car insurance cost known as a loss damage waiver can go up to $19 per day. There are also optional extras that can be added on to give the driver extra piece of mind. Including liability insurance, personal accident insurance and personal effects coverage, which could add up to another $23 onto your overall insurance cost. However, the average cost will be a little lower than this coming in at about $10 for the loss damage waiver. $20 if you want the additional extras to be included within your insurance policy. This is not too expensive if you are renting a car for one day however it can get quite expensive over a longer period.

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Collision Damage Waiver (CDW) or Loss Damage Waiver (LDW)

If you are in an accident with your rental car, you may be responsible for a deductible of up to several hundred dollars, or in some cases, the entire price of the vehicle. CDW, also known as Loss Damage Waver or LDW protects you from the liability of any loss or damage to the rental vehicle up to the in full value of the rental car.

CDW or LDW is usually an optional coverage type when purchasing rental car insurance. If you have comprehensive collision car insurance, you may be able to save some money and decline the coverage as your policy probably offers similar protection for your rental car as well. Generally speaking, CDW/LDW coverage will increase the price of your car rental by about $8 to $12 per day.

Personal Accident Insurance (PAI)

When renting a car, you can purchase personal accident insurance that provides benefits for medical expenses for you and passengers in the vehicle. This type of coverage also pays death benefits in the event someone is killed in a car accident while you are driving the rental car. This coverage is also optional and may also be covered by your personal car insurance policy.

Additional Liability Insurance (ALI)

ALI is also an optional coverage type that protects you and other authorized drivers of the rental car against potential claims that may be made by third parties for bodily injury, death or property damage caused by driving the rental car. Again, your personal car insurance policy may provide this type of liability coverage as well and ALI may not need to be purchased.

Personal Effects Coverage (PEC)

This optional type of coverage will cover any personal belongings stored inside the rental vehicle. If while the rental car is in your possession, it is broken into and your personal effects or items are stolen, this coverage will pay you an amount needed to replace the items. Some of these types of coverage pay about the fair market value average while others pay the actual new item replacement costs.

Many of these rental car insurance options may be covered with your personal comprehensive collision car insurance policy. In order to find out if you need to purchase these types of coverage or not, you should contact your insurance agent and ask him about rental car coverage that may be included with your policy. Also, if you're using a credit card to pay for your car rental, the credit card company may also provide many of these same types of rental car insurance coverage; so, contact your credit card provider before renting a vehicle.

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