Rental Car Insurance Explained: What to Check Before You Pay

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Rental car insurance is confusing, and the counter is a common place to overpay. Here is a simple checklist to review before you book.

Common types of coverage

Collision or damage waiver: covers damage to the rental car
Liability: covers harm to other people or their property
Personal accident or belongings coverage: covers injuries or items inside the car

Where you may already have coverage

Your own auto policy may cover rentals in some situations
Some credit cards offer rental coverage if you book with that card, with conditions
Some travel insurance plans include rental car damage coverage

Check your policy documents or ask the provider directly, because rules and limits differ.

Questions to ask before you buy extra coverage

What deductible would I owe if the car is damaged?
Is the coverage valid in the state or country where I will drive?
Does it cover loss of use and towing fees?
Are there exclusions for certain roads or vehicle types?

Protect yourself at pickup

Take photos or a video of the car before you drive off
Note any scratches on the rental agreement
Keep your paperwork until the final charge appears on your card