If you’ve ever rented a car for business or leisure, you’ve probably asked yourself whether rental car insurance is necessary—likely while standing at the pick-up counter. At Esch Insurance Agency, we understand that this is a common concern, so we’ve put together this guide to help you make an informed decision the next time you reserve a rental car.

Do You Need Rental Car Insurance? Here’s How to Decide:

1. Review Your Personal Auto Insurance Policy
   Before renting a car, check your personal car insurance policy. If you already have liability, comprehensive, and collision coverage, your existing policy will typically extend to a rental car. In this case, you likely won’t need to purchase additional rental car insurance.

2. Understand International Coverage
   If you’re planning to drive internationally (outside of Canada), your personal auto insurance likely won’t cover you. It’s essential to verify this before your trip to avoid surprises.

3. Know Your Coverage Limits
   Without comprehensive or collision coverage, you could be responsible for out-of-pocket expenses if the rental car is damaged. Reviewing your policy beforehand will clarify what’s covered and help you determine if extra protection is necessary.

4. Check Credit Card Benefits
   Some credit cards offer rental car insurance as a benefit if you use the card to pay for the rental. Contact your credit card provider to understand the specific coverage offered.

5. If You Don’t Have Auto Insurance
   If you don’t carry personal auto insurance, you’ll need to purchase at least liability coverage from the rental company, as it’s required by law in most states.

When to Consider Rental Car Insurance

In some cases, purchasing rental car insurance can provide valuable peace of mind. Here are a few scenarios where it might make sense:

• You only have coverage through a commercial car insurance policy.
• You want to avoid paying a high deductible in the event of an accident.
• Your current auto insurance policy doesn’t include comprehensive or collision coverage.

Rental car insurance typically costs an additional $5 to $30 per day, depending on the type of coverage you choose. While it may not always be necessary, it can be a financial lifesaver in the situations mentioned above.

Need Guidance?

If you have an upcoming trip and are unsure whether you need extra coverage, we’re here to help. At Esch Insurance Agency, we’re happy to review your policy and provide a clear answer. It only takes a few minutes to ensure you’re fully informed and protected.

Give us a call today to discuss your options!