Do I Really Need to Pay for Rental Car Insurance?

Rental cars are a great way to travel on the cheap. Whether you want an eco-friendly economy car or a minivan for the family, Community Rental Car has many affordable options. Many customers, however, have one big question when it comes to renting a car: what about insurance? To learn more about car rental insurance, keep reading.

Rental Car Insurance 101

Community Rental Car offers three options for those seeking to purchase insurance for their car rental:

• Collision Damage Waiver – A CDW is an optional daily charge that guarantees that Community Rental Car will cover the costs of any damage to your rented car. A CDW is generally only necessary if you do not have comprehensive or collision coverage on your personal auto policy. Additionally, many travel insurance policies include similar coverage as part of their plan.
• Personal Accident Insurance – PAI is an optional coverage that pays a death benefit and a portion of your medical expenses if you are harmed in an accident. Before purchasing this, check to see if your personal car insurance policy includes personal injury protection. Additionally, most health insurance policies cover the cost of medical expenses incurred as a result of a car accident. If your health insurance and/or auto insurance provides adequate coverage, you likely do not need PAI.
• Personal Effects Coverage – PEC is an optional coverage that safeguards your luggage against damage. Many homeowners policies cover luggage and belongings, even if they’re stolen from your car. If so, PEC is likely unnecessary.

When Should I Purchase Rental Car Insurance?

If you have sufficient coverage from your auto and homeowner’s insurance policies, you can probably forgo rental car insurance. There are, however, a few scenarios in which it could pay off:

• Bare bones insurance – If you have high deductibles or don’t have comprehensive and collision coverage, a CDW is a smart move.
• Traveling for business – If you’re renting a car for business, your car insurance may not cover you.
• Insurance rates – If you are worried about an accident raising your personal insurance rates, opt for rental car insurance. You’ll receive the coverage you need without inflating your monthly rates.

More Information

To learn more about renting a car from Community Rental Car, call us at (336) 448-2889, or stop by during our normal business hours. Our convenient locations in Winston-Salem and Winston-Salem help us easily serve customers in Greensboro and beyond.

https://www.daveramsey.com/blog/should-you-buy-rental-car-insurance

https://www.thesimpledollar.com/insurance/auto/rental-car-insurance/