First of all, most U.S. drivers already carry auto insurance which will provide full or partial protection while driving a rental car (within certain dollar limits and coverage only for rentals within the United States and, sometimes, Canada). Some insurance policies only cover cars rented while your own car is being repaired, while most do not cover certain types of vehicles, like luxury cars or vans. Check your own personal policy for these limitations and exclusions.

Even with these limitations, your personal auto insurance will be the primary source of coverage if you have an accident or suffer injury while driving a rental car. Other types of coverage, such as credit card policies and the rental company’s optional insurance offered at the time of the booking, will be subrogated. This means it will not apply until you have reached the maximum of your own auto insurance coverage. Also, be aware that your personal auto insurance rates may increase if you file a claim for damaging a rental car.

Some states have legislature in place requiring rental companies to inform you that their insurance coverage may duplicate your personal auto policy, though these laws do not specify how you must be notified. The best way for you to do is to talk directly with your auto insurance agent before you rent a car and ask the following questions.

What geographical area does my policy offer rental coverage in? (Generally speaking, auto policies cover the U.S. and Canada only.)

How much liability coverage do I currently have? (If you own an older car, for example, you may carry only the minimum amount of liability coverage that is required by the laws of your state, a level that may be insufficient to protect you against the risk of completely replacing a brand-new rental vehicle or, potentially even worse, paying an excessive personal injury claim.

How much is my deductible? (Are you willing to pay that amount out of pocket if you have to file a claim for damaging a rental car?)

Does my policy cover only the value of the vehicle(s) listed on my policy? (If so, you should compare that value to the replacement cost of the type of car you will be renting.)

Does my policy cover theft and collision damage? (Most U.S. drivers already carry collision coverage that can replace the protection sold by rental car companies.)

In the end, the decision of whether or not to purchase optional extra insurance from a car rental company is yours, of course. Consider well the value of the insurance against the cost and bear in mind the above information and make the decision with all the facts.

Michael Russell

Your Independent guide to Car Rental

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Rental cars are leased to users who don’t have access to their own automobiles, such as when travelling. They can be hired from rental car centres. Car hire in Britain & USA has become a highly competitive market with the arrival of online booking and bargain air tickets offering a car hire package deal. As a result prices are very keen. The big rental companies are having to look at their online strategies as a result. Another growth area is the decision many people have made to give up their private car and opt for renting when they need one. This has given rise to home deliveries and one way car hire in Britain, proving to be a very popular sector.

Top Tips For Saving Money On Car Rental Rates

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Renting a car is a great way to see a new place, but car rental companies are leery of hiring cars to younger people. Many rental firms will simply not provide cars at all for drivers under twenty-five, while the price rates of others are simply prohibitive. Unfortunately, there is sound logic underlying this sense of caution displayed by car rental companies, as younger people have been shown time and again to be the most likely group of drivers to be involved in car accidents - this is also reflected in the high insurance rates that are offered to younger drivers. There are however some companies that offer reasonable rental deals to drivers under twenty-one, so if you are lucky enough to get a good rental deal, then pay it forward to your peers - drive your rental car as responsibly as you can to ensure the continuation of the great price for the next young driver who comes along.

Ensure your safety by always wearing your seatbelt. This is a simple thing to do that can literally save lives. It only takes a second, but can make a huge difference in an accident.

Always keep to the speed limit. Speed has been repeatedly shown to be the single greatest cause of road accidents, so stay safe and stick to the designated speed limit for the area you are in. Most places you visit will have signage to indicate the speed limit, but err on the side of caution if you are unsure. At the very least, you don’t want to have to pay a speeding fine.

Always be vigilant when driving in an unfamiliar area - keep your eyes peeled for any road signs and always follow them! There is often construction work going on in large cities, so keep an eye out for this too. Following road signs can prevent accidents.

As you probably heard countless times when first getting into a car, drive defensively! Even if you are a careful driver, you cannot always account for others, so watch out for other drivers - let others speed and cut across you if they want, your priority is simply to stay safe.

When driving in an unfamiliar place it is extremely important to concentrate on the road. While the road might seem to be distracting you from joining in the fun, your passengers will thank you for staying safe. Keep music to a minimum and ask your friends to keep rowdy games for later - once you get to where you’re going the fun can begin with abandon! Be careful and stay safe, and do your bit to help keep rental car prices for young people as low as you can.

This article was written by Carl Spanier an avid traveler and rental car expert. You can visit his website at
Car Rental Resources

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