Yes, you should strongly consider getting insurance when renting a car. While your personal auto policy or credit card may provide some coverage, it's often insufficient or comes with high deductibles. The primary reason is to shield yourself from potentially massive out-of-pocket expenses in case of an accident, theft, or damage to the rental vehicle. Without the rental company's coverage, you could be responsible for the full cost of repairs, loss of use fees (while the car is in the shop), and diminished value charges.
Rental companies typically offer several types of insurance:
- Loss Damage Waiver (LDW) or Collision Damage Waiver (CDW): This isn't traditional insurance but a waiver. If the car is damaged or stolen, the rental company waives its right to collect money from you for the vehicle's repair or replacement. This is the most important coverage to consider.
- Liability Insurance: This covers costs if you injure someone or damage their property while driving the rental car. Your personal auto policy usually extends this, but state minimums can be low, so supplemental liability protection (SLP) is worth considering.
- Personal Accident Insurance (PAI): Covers medical costs for you and your passengers.
- Personal Effects Coverage (PEC): Protects your personal belongings if they're stolen from the rental car.
Before your trip, contact your auto insurance agent and credit card company to understand exactly what they cover for rental cars. This due diligence will help you make an informed decision at the counter. For peace of mind, especially when traveling in unfamiliar areas, the LDW/CDW is often a worthwhile investment.
