Common Myths and Misconceptions About Rental Car Insurance

Are you planning a trip and thinking about renting a car? It is essential to be mindful of the various insurance options available to best protect yourself in the event of an accident. 

Unfortunately, there are many myths and misconceptions surrounding rental car insurance, which can make it difficult to determine what's true and what's not. These can lead people to make uninformed decisions. In this blog post, we’ll be discussing some common myths and misconceptions about rental car insurance so that you can confidently navigate your way through the process when the time comes.

Let’s dive ahead!

Rental Car Insurance Myths

Myth 1: "Collision Damage Waiver is the same as rental car insurance."

When you're renting a car, you may have heard of the Collision Damage Waiver, or CDW, which is often presented as rental car insurance. It's easy to think that these are the same but there's a big difference. 

The CDW is a type of waiver that relieves you of financial responsibility if the rental car gets damaged or stolen while you're using it, while rental car insurance offers you much broader protection including liability and personal injury coverage. That being said, the CDW is still an important consideration when renting a car because it can potentially save you a significant amount of money in the event of an accident. 

Understanding the difference and weighing the pros and cons of each is crucial, so be sure to do your research before hopping behind the wheel.

Myth 2: "My personal auto insurance covers rental cars." 

It is a common misconception that personal auto insurance policies automatically extend coverage to rental cars. While this may be partly true, it is crucial to carefully review the specifics of your policy and understand the extent of coverage provided.

Most personal auto insurance policies do include some type of coverage for rental cars, but the level of protection can vary significantly from one policy to another. Some policies only offer limited liability coverage, while others provide comprehensive and collision coverage as well. It is essential to know the details of your policy before assuming you are fully covered.

Liability coverage typically covers damages or injuries caused by you while driving a rental car. However, damage to the rented vehicle itself may not be included or may have limitations. Therefore, if you are involved in an accident or the rental car gets damaged, you might find yourself responsible for paying out-of-pocket expenses.

To ensure adequate coverage when renting a car, consider contacting your insurance provider before your trip to discuss any potential gaps in protection. They can provide information on whether your current policy adequately covers rentals or if additional insurance options should be considered.

In situations where comprehensive and collision coverage is lacking from your personal policy—or if you lack personal auto insurance altogether—and you frequently rent vehicles, purchasing supplementary rental car insurance, such as Bonzah’s car renters damage insurance, is advisable. 

Taking appropriate steps to verify your level of coverage will protect you from unexpected financial burdens in case of accidents or damages involving a rental vehicle.

Myth: "My credit card provides sufficient coverage."

Many credit cards offer rental car insurance as a perk, but the coverage can vary widely. Some cards offer primary coverage, meaning it kicks in before your personal auto insurance policy. However, most cards only offer secondary coverage, which means it only applies after your personal car policy has been exhausted. It's crucial to read the terms and conditions of your credit card's insurance coverage to understand what's included and any limitations that may apply.

Before relying on your credit card's rental car insurance, take the time to review the terms and conditions provided by your issuer. Read carefully to understand the level of coverage offered as well as any exclusions or limitations. Additionally, be aware of any requirements such as using the credit card for payment or declining additional coverage offered by the rental car company.

It is also worth considering whether you have alternative options for obtaining rental car insurance. For example, some travel insurance policies include rental car coverage, which might offer more comprehensive protection than what your credit card provides.

Finally, keep in mind that even if your credit card offers some form of rental car insurance, it may not cover certain types of vehicles such as exotic cars or large SUVs. Furthermore, there may be limitations on where you can rent a vehicle and for how long.

Always consult your credit card issuer directly or refer to their documentation for accurate information concerning their specific rental car insurance benefits before making any assumptions about your coverage. Being informed about the details and limitations will allow you to confidently utilize this perk while avoiding potential headaches down the road. 

Myth: "I don't need rental car insurance if I have health insurance."

Many people believe that if they have health insurance, they don't need to purchase rental car insurance. However, this is not entirely true. 

While your health insurance may cover medical expenses resulting from an accident, it typically won't cover damage to the rental car or liability claims if you cause injury or damage to someone else's property. Rental car insurance provides additional protection in these areas, ensuring that you're fully covered in case of an accident.

Get true peace of mind when driving a rental car

By understanding these common myths and misconceptions, you can make a more informed decision about whether to purchase rental car insurance or rely on other forms of coverage. 

For more information about rental car liabilities and coverage options, consider Bonzah as one avenue to explore for affordable plans that fit your needs. 

Check out Bonzah's rental car insurance coverage options!