The approximate daily cost for supplemental "full coverage" insurance purchased directly from a rental car company typically ranges from $15 to $30 per day. This daily rate is added to the base cost of your rental vehicle.
Understanding "Full Coverage" for Rental Cars
"Full coverage" on a rental car isn't a single insurance product but rather a combination of protections that shield you from various financial risks. These typically include:
- Loss Damage Waiver (LDW) / Collision Damage Waiver (CDW): This waives your financial responsibility for damage to or theft of the rental car, regardless of fault. It's important to note this is often a waiver, not an insurance policy.
- Supplemental Liability Protection (SLP): This provides additional liability coverage beyond the state-mandated minimums, protecting you if you cause damage to another vehicle or property, or injure someone.
- Personal Accident Insurance (PAI): This covers medical expenses and accidental death benefits for you and your passengers.
- Personal Effects Coverage (PEC): This covers personal belongings stolen from or damaged in the rental car.
Daily Cost Factors
The specific daily cost within the $15 to $30 range can vary based on several factors:
- Rental Company: Different rental companies may have varying pricing structures for their supplemental insurance offerings.
- Location: Rates can differ depending on the state or country where you rent the car.
- Vehicle Type: Renting a luxury or specialty vehicle might incur higher insurance costs.
- Coverage Components Selected: The total cost will depend on which specific types of coverage (LDW, SLP, PAI, PEC) you choose to purchase.
Do You Need to Buy Rental Car Insurance From the Rental Company?
While purchasing insurance at the rental counter is an option, you might already have coverage that extends to rental vehicles, potentially making the rental company's offerings redundant.
- Your Personal Auto Insurance Policy: If you have an existing car insurance policy on your own vehicle, it may provide coverage for rental cars. Many comprehensive and collision policies extend their benefits to rental vehicles, covering damage to the rental car itself. Your liability coverage would also typically extend to a rental. It is highly recommended to contact your personal auto insurer before renting to confirm the extent of your existing coverage.
- Credit Card Benefits: Many credit cards offer secondary (and sometimes primary) rental car insurance benefits. These benefits often cover collision damage and theft of the rental vehicle if you use that card to pay for the rental. Check with your credit card issuer for details on their specific rental car benefits, including coverage limits and exclusions.
- Third-Party Insurance Providers: You can also purchase standalone rental car insurance from independent third-party providers, which can sometimes be more comprehensive or cost-effective than what's offered at the rental counter.
Making an Informed Decision
Before you rent a car, taking a few proactive steps can save you money and ensure you have adequate protection:
- Review Your Personal Auto Policy: Confirm with your insurance agent or review your policy documents to understand what coverage you already have for rental vehicles.
- Check Credit Card Benefits: Contact your credit card company to inquire about any rental car insurance benefits they provide.
- Assess Your Needs: Consider your risk tolerance and the value of the rental car. If you have no personal auto insurance, or if your policy has high deductibles or limited coverage, purchasing supplemental insurance might be a wise decision.
By understanding your existing coverage and the options available, you can make an informed choice about whether to purchase additional rental car insurance and avoid unnecessary expenses.
