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Yay or Nay: Purchasing Rental Car Insurance While On Vacation

By January 7, 2015June 9th, 2020Auto Insurance

Ahh! You’re about to go on vacation and you are already feeling a little more relaxed.

Going on vacation is one of life’s greatest pleasures. You get to see the world, spend time with your family, and experience a new part of the world. But as fun as it is, vacation does not come without its own set of worries.

  • Will your house be okay while you’re gone?
  • Who will take care of your dog?
  • What will happen if you get in a car accident while driving the rental car?

To help you feel more at ease you ask a neighbor to help out with your house. You get your friend to watch your dog while you’re away. But the question about rental car insurance and how well you’re covered lingers.

Do you need to purchase that extra insurance the company offers? Or will your car insurance cover you in a rental car?

What Is Rental Car Insurance?

To know if rental car insurance is the right option for you, you first have to know what it covers.

Rental car companies call their insurance a “waiver.” This means that you waive all responsibility in an accident. There are no deductibles to pay, you don’t have any claims filed against your insurance, and you can walk away without a hint of responsibility.

It covers you in almost all types of accidents, no questions asked. If you purchase the waiver, the only time you will not be covered is if you violate the contract. This includes:

  • Letting someone else drive the vehicle
  • Engaging in unlawful behavior, such as drinking and driving
  • Taking the car off road

Your Car Insurance vs. Rental Car Insurance

Although the coverage sounds enticing, it’s expensive. You already pay for your car insurance so shouldn’t you be covered on matter which vehicle you’re driving?

In short, yes.

Your car insurance extends to any vehicle that you lawfully drive. That means that in your rental car, you’re covered in the same way as in your personal car in Missouri. If something happens and you get into a car accident or the vehicle is damaged, you will have the same level of coverage. This means:

  • You don’t have to file a claim if the damage is below your deductible.
  • Your insurance will cover anything beyond the price of your deductible.

You could drive the car, damage free, without paying for any extra insurance.

What About the Other Types of Rental Car Coverage Offered?

Rental car coverage does not stop at the damage waiver. You will probably need to accept or decline personal injury insurance and liability coverage.

  • Personal injury coverage protects the people in your vehicle beyond what the basic state laws protect.
  • State liability coverage increases the amount of liability you have while in the rental car beyond what you already have on your insurance and through the minimum state requirements.

If you’re not sure how much coverage you have for any of these areas, it’s best to check with your insurance agent before you go on your vacation. That way, when you hit the rental car counter you can confidently accept or decline the coverage you need and still have peace of mind during your time away.