Do you need Car Rental Insurance? The answer depends on your current auto insurance policy you have in force and how your policy terms apply.
If you currently have auto insurance in the United States then chances are your current auto insurance policy coverage will extend to any leased vehicle or car rental. In general terms the coverages that you currently pay for on your personal auto insurance policy extend to the rental car.
When you sign your rental car agreement the rental company will ask for proof of your current insurance and you will be asked to waive the additional insurance for the rental car or accept additional coverage. Generally speaking, if you have a $500 collision and comprehensive deductible on your personal car insurance, then in an accident or comprehensive claim (wind, fire, theft) that you experience while in possession of the rental car your insurance will extend.
VERY IMPORTANT – However, even if your current insurance carrier extends coverage to the rental car, most insurance companies do not pay for loss of use to the rental car company. In other words, the time that the car is not rentable due to repairs, you would be responsible for this extra expense.
All insurance companies are different and you must check your policy declarations pages and contact your agent to determine the exact coverages that extend to a rental car in Orlando and the USA. If you are from the UK and you are renting a car in the U.S. then you will want to see if the UK insurance coverage extends. Double check with your carrier to see if they include break-down and emergency road service for you rental car.
You can solve all of these car rental insurance problems by buying the extra insurance provided to you by the rental car company when you sign the agreement and pick up the car. Most rental car companies will give you complete coverage, including loss of use for an extra fee on top of your car rental fees. While it is a bit more expensive you can simply hand the car insurance claim over to the rental car company and avoid filing a claim with your own insurance carrier.
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