Take the Rental Car Insurance or Not?
Rental car insurance is offered by the rental companies when you rent. But it probably duplicates your existing auto insurance protection. Also, credit card companies offer secondary rental car insurance. Check with your Allstate agent and your credit card companies before you rent.
Allstate Insurance Covers Rental Cars
Allstate usually provides coverage that matches the rental car insurance protection. Your policy’s coverage may extend to your rented vehicle. Your Liability Coverage, Collision and Comprehensive Coverage could be working to protect both you and your rental vehicle.
If you sign up for the Allstate Motor Club, you can get discounts at many major rental companies.
The confusing terminology of rental car insurance is difficult to understand but we’ll try to explain it.
In rental car insurance language, a Collision/Loss Damage Waiver is sometimes called CDW, LDW, or simply DW and offers some of the same protection as an insurance policy. But, it’s not really equivalent to an Allstate insurance policy. It’s only a “damage waiver,” meaning the rental company agrees not to claim against you if the rental car is damaged or stolen.
Damage waivers provided by rental car insurance vary, but they typically exclude damage incurred under certain conditions. They exclude driving outside an agreed area or driving while impaired. Damage waiver costs can vary significantly, so call the rental car company, or look them up on the Internet for pricing information before you pick up the car.
Damage waivers may duplicate your existing Collision and Comprehensive Coverages. Your Allstate auto insurance policy typically covers damage to the rented vehicle, minus your deductible, so check your policy before renting.
Supplemental Liability Protection is a coverage amount, often $900,000, that protects you if you’re responsible for damage to somebody else’s vehicle or property.
Personal Effects Insurance/Coverage typically covers your valuables if they’re stolen from your rental vehicle.
Your Allstate Auto Insurance Policy won’t cover your personal effects-things like your purse or mp3 player-if they’re stolen from a rental car. The rental car insurance may cover this. But that’s the kind of coverage our Personal Property Protection policies may offer.
Personal Accident Insurance covers injuries or accidental death while in the rented vehicle. It may also cover other drivers or family members riding in the automobile. Your health insurance may duplicate this coverage. Also, Allstate Supplemental Health Insurance can cover gaps, including deductibles, in your regular health insurance plan.
Ask Your Credit Card Company About Additional Coverage
Credit card companies offer secondary insurance if you rent a vehicle using their card. It’s called “secondary” insurance because it cannot be applied until your primary insurance maximum is reached. Secondary insurance might help you pay for deductibles, coverage gaps, or damages exceeding your primary insurance payout. Some credit card companies also offer primary insurance for car rentals.
There is really no “standard card coverage”. Call your card issuer to talk through all of your protection options.
Sometimes Supplemental Insurance is Worthwhile
The rental car insurance is an option because it protects you from a raised auto insurance premium if you damage the rental car. Supplemental coverage might also be a smart idea if you carry a high deductible on your auto insurance policy.