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  • Writer's pictureCharlotte Burr

Rental Car Insurance-Do You Need It?


Rental car insurance is an optional policy that you can add that covers you while renting a car. This type of coverage may include liability, collision, personal effects coverage, and personal accident insurance.


Before everything, check your auto policy! If your personal auto policy has liability, comprehensive, and collision coverage these will most likely carry over to your rental car. Depending on your coverage, rental car insurance might not be necessary.


Loss of use: Although your personal auto insurance might cover the costs of repairs to a damaged rental car, the rental car company will bill you for loss of use. Hypothetically, if you crashed a rental car that your personal insurance covers but it takes 7 days to repair, you will be billed for what is equal to renting that car for 7 days. You can avoid this loss of use bill by buying the rental car insurance offered.


What if you're not covered? If you do not have any type of auto insurance, the rental car company will make you purchase their liability coverage in the least.


If you decide to buy rental car insurance you will have the choice to add all these types of coverages:

  • Liability: this is a requirement to legally drive as it covers the damage you cause to other vehicles or people while driving the rental car.

  • Collision: This will cover the damages done to the rental car itself.

  • Personal Accident Insurance (PAI): This will cover you and your passengers for any injuries sustained while driving the rental car.

  • Personal Effects Coverage (PEC): This coverage will protect your personal items if they are stolen from the rental car.


Independent insurance brokerage located in Tempe, AZ. We offer auto insurance, homeowners insurance, life insurance, renters insurance, commercial insurance…

Disclaimer: Coverage will vary on state, insurance company, and type of policy.

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