Whenever an individual rents a car, they will be asked if they would like to add the company's rental car insurance to the contract for renting the car. This rental car insurance is designed to protect the individual renting the car and the company renting out if anything should happen to the vehicle while it is in the renter's possession.



Many individuals are unsure of whether the price of the insurance is worth the coverage offered and some believe that their current car insurance coverage or the coverage offered by many credit card companies is adequate to protect the individual from liability if anything happens to the car while in their possession. For some individuals, the insurance offered by the rental car company is their best option for coverage.

There are several different types of insurance coverage that are included in the rental car insurance offered by the rental car companies. The first type of coverage is the damage waiver, which may include a collision damage waiver, a loss damage waiver, and a physical damage waiver. Each of these waivers waives the right of the insurance company to collect additional money from the individual who has rented the car in the event that the car is damaged while in their possession. The collision damage waiver protects the renter in the event that the car is in an accident with another car. The loss damage waiver protects the individual in the case of the car or parts of the car being stolen while the car is in the renter's possession. The physical damage wavier protects the individual from liability is the car is physically damaged from sources other than a collision, such as skidding off of the road and hitting a tree or hit by a blown truck tire.

Another type of insurance coverage offered by the company is personal liability coverage. This type of insurance coverage protects the individual in the event that they cause damage to another individual, vehicle, or piece of property while operating the vehicle rented from the car insurance company. Personal accident insurance coverage offered by the company will provide a one-time payment in the event that you or a passenger in your car is injured, maimed, or killed in a car accident involving the rental vehicle.

The final type of insurance coverage typically offered by the rental insurance company is personal property insurance. This will pay to replace any personal property that is lost or stolen from the rental vehicle while it is in the renter's possession. Each of these types of insurance coverage has specific limitations, so it is best to read the conditions carefully when obtaining insurance from the rental car company.