If you’ve ever stood at the rental car counter and wondered whether you should add rental car coverage, you’re not alone. While it may seem like an unnecessary expense, opting in could save you thousands and a major headache if something goes wrong. Here’s what you need to know.
1. What is Rental Car Coverage?
Rental car coverage is a protection plan offered by rental car companies that covers damage, theft, and liabilities associated with the rental vehicle. It usually includes:
- Collision Damage Waiver (CDW)
- Liability Coverage
- Loss of Use Coverage
- Personal Accident Insurance
2. Why Rental Car Coverage Matters
The most overlooked but important aspect of rental car coverage is loss of use—a charge you could face if the car is damaged and out of service.
💡 Real Example: If a rental car is in the shop for 30 days after an accident, the rental company may charge you $30–$50 per day for lost revenue—not typically covered by your personal insurance.
3. What Your Personal Auto Insurance May Not Cover
While many personal auto insurance policies do extend coverage to rental cars, there are significant gaps, such as:
- Loss of Use: As mentioned, your policy likely won’t cover the downtime while the rental is being repaired.
- Diminished Value: The reduction in a car’s value after it’s been in an accident may not be covered.
- Administrative Fees: Some rental companies tack on processing fees your insurer won’t pay for.
For a detailed breakdown of rental car insurance options, check out Progressive’s Rental Car Insurance Guide.
4. When You Should Buy Rental Car Coverage
✅ You’re traveling for business or out of the country.
✅ You don’t have comprehensive/collision coverage on your auto policy.
✅ You want to avoid dealing with claims and paperwork in case of an accident.
✅ You simply want peace of mind to toss the keys and walk away.
Conclusion
Yes, rental car coverage costs a bit more upfront—but the protection it offers, especially regarding loss of use, can make it well worth the cost. It gives you the freedom to avoid messy disputes, unexpected charges, and stressful claims processes.For more coverage tips and insurance advice, visit Nebraska’s Insurance.
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