If you have fully insured your own vehicle, including collision and comprehensive coverage, and rent a vehicle for pleasure only (while on vacation, for example), you do not need to buy extra insurance from the rental company. In fact, in most states your basic rental fee by law will include liability coverage for damage or injury to others. However, we still recommend that you purchase the coverage for the following reasons:
- Loss of Use will not be covered under your personal insurance policy for the rental car. This can add up to significant dollars, depending upon how long the rental company is without the benefit of the vehicle.
- Rental car companies can put a hold on your credit card for deductibles, and the anticipated loss of use. Depending upon your card limit, this may cause you hardship.
- Peace of Mind. When purchasing the collision coverage directly from the rental car company, you can "walk away." No paper work, follow up etc. Just get a new car and enjoy your vacation!
Please note: Different rules apply when you rent a cqar for business purposes. See For Your Business - Auto.
But different rules apply when you rent a car for business purposes. If you do not have your own insurance, be aware that many car rental liability policies cover you only at the state's required minimum. Also, you should buy the collision and comprehensive coverage offered by the rental company for your own protection.
