Paul Dreher Director of Personal Insurance View Bio

It’s not uncommon for rental car agencies to offer you the opportunity to purchase additional auto coverages on your rental, but do you need them? Lawley has the answers.

Decide Before You Rent

The best time to make the decision about whether you will need extra rental car insurance is before you’re standing at the car rental counter. Read on to learn about car rental insurance considerations and what you need to know to make sure that you’re covered.

It’s not uncommon for rental car agencies to offer you the opportunity to purchase additional auto coverages, but do you need them? Here are some basic coverage options:

  • Collision Damage Waiver (CDW), or Loss Damage Waiver (LDW), relieves you of financial responsibility if your rental car is damaged or stolen. If you have comprehensive and collision on your own car, you most likely don’t need to purchase CDW from the rental car agency.Additionally, your credit card company may include some collision and theft protection if the rental car is paid for with your card. This includes coverage for “loss of use,” which refers to the amount of money a rental car company can stand to lose while a car is being repaired. If your credit card doesn’t offer coverage for loss of use, you may want to consider purchasing CDW from the rental agency.
  • Liability Insurance provides excess liability coverage of up to $1 million for the time you rent a car. Rental companies are required by law to provide the minimum level of liability insurance required by your state. Generally, this doesn’t offer enough protection in a serious accident. If you have adequate liability coverage on your car or an umbrella policy on your home/auto, you may consider forgoing this additional insurance.

Your Best Bet

  • Before you rent a car, contact Lawley to find out how much collision and liability coverage you have on your vehicle. In most cases, the coverage and deductibles you have on your personal automobile insurance policy would apply to a rental car, providing it is used for pleasure and not business.
  • If you are renting from TURO or other car sharing agencies – most likely your policy will NOT provide any insurance coverage and you should purchase the maximum coverage available.
  • If you are renting a vehicle that is not classified as a passenger car (e.g., a moving truck or 15-passenger van), you must purchase a separate policy from the rental company to be covered in that vehicle.

Top Ways to Save on your Auto Premium

  • Consider raising your deductible
  • Keep up your good driving record
  • Drive less to qualify for a low-mileage discount
  • Drive a car with safety features such as anti-lock brakes, airbags, etc
  • Install an anti-theft device
  • Ask about our multi-policy discounts

Contact us before renting your next vehicle. We can help you decide the necessary coverage needed to keep you properly covered without overpaying.


Disclaimer:  This brochure is provided for informational purposes only. The information provided herein is not intended to be exhaustive, nor should it be construed as advice regarding coverage. Eligibility for coverage is not guaranteed and all coverages are limited to the terms and conditions contained in the applicable policy. © 2008, 2013, 2016 Zywave, Inc. All rights reserved.