How to decide if you need rental car insurance

CHARLOTTE — If you have ever rented a car, you have been asked one question: Do you need rental insurance?

Some people decline, believing their credit card or auto insurance will cover them.

But the experts at Consumer Reports said that while that’s true in many cases, it’s not true for all cases.

Sean Beasley travels a lot and says he rents around 20 cars a year.

“I don’t get insurance because my insurer, my vehicle insurer, automatically offers us rental car insurance,” Beasley explained.

He pays a monthly fee for the rental coverage in his insurance policy, something consumer reports said is worth considering.

“Both auto insurance and credit cards can have significant limitations regarding rental cars, including what kinds of vehicles they cover, for how long, and in what countries,” said Lisa Gill with Consumer Reports.

Insurance through the rental car company can be an extra $50 per day.

So ask yourself: Is the rental car fancier than yours? Some personal auto policies and credit card rental insurance don’t cover certain vehicles, like large SUVs or luxury cars.

Are you renting in a foreign country? Allstate, Geico, Farmers, State Farm, and Progressive only cover rentals in the United States and Canada. The same goes for insurance from most credit card companies.

RVs, cargo vans, and moving trucks usually aren’t covered under standard auto or credit card insurance policies.

“If you only have liability insurance on your own car, you’ll need to get a separate policy for the car rental in case there’s damage to it in the event of a crash,” Gill explained.

That liability coverage kicks in if you’re found legally responsible for property damage or for injuring someone while driving the rental.

You can also add a collision damage waiver, which covers damage to the car from a wreck, and a loss damage waiver, which protects ‘you’ from theft and damage to the car.

Also, be sure to check your policy, because terms can differ depending on the company.

If you are renting a car for work, check with your employer to understand what is and what isn’t covered since your personal insurance and credit cards may not apply.

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