Hi,
I’m coming for a visit to the U.S. in December, and I’m renting a car for part of the time. How does insurance work for car rentals? Is any basic insurance included with the rental? I know additional insurance is available, but what is it in addition to? I don’t have a car where I live now (Israel), so it’s not like I already have a basic policy.
If it makes a difference, I’m driving the car in Maryland and Pennsylvania.
Thanks!
–SMM
Most states require that car rentals come with at least the minimum liability coverage required by that state at no additional cost to you. That should be sufficient, but if you have substantial assets, you might want to purchase more. This protects you from liability for the damage you do to others. It does not protect you from the damage you do to the car you rent. For that you will have to purchase a Collision Damage Waiver from the car rental place. They usually offer you a variety of deductibles. If you can afford it, get one with no deductible. If someone dings your car, it can be expensive (and they also charge you for their “loss of use” while the car is being repaired). The CDW will likely be about $20 per day.
Additional insurance is to cover what your insurance does not cover. If you do not have insurance then you will be uninsured.
Yes, as ethelbert says the minimum liability protection required by state law is included by the rental car company with the car rental.
It’s in addition to the basic coverage just described. You can buy additional liability coverage over and above the minimum required by law, so that if you cause an accident and get sued you won’t lose your assets after the rental car company pays the minimum. And, you can buy physical damage insurance (technically, a “waiver”, or CDW) so that the rental car company won’t charge you if you damage their car.
If you already had auto insurance, you wouldn’t need the extra liability coverage, because your own insurance would provide it. Since you don’t, it would probably be a good idea to buy it, especially if you have significant assets in Israel.
Regarding the CDW, check with your credit card company first, since many credit cards provide this coverage (free) when you rent a car with their card. However, be forewarned that submitting a claim to a credit card company can be even more cumbersome and paperwork-intensive than filing an insurance claim. For total peace of mind, buy both the extra liability insurance and the CDW, but it will be expensive.
I would strongly recommend you carry the additional cover- unless you have so few assets that there is no point in somebody to sue you for injury.
If you regularly rent, especially internationally, it may be worth exploring an annual DIC cover (difference in conditions) which tops up whatever legal minimum is to a uniform set level of cover. It usually costs the same as about two weeks auto full addition plus CDW cover for annual any number of hires cover