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Does Your Car Insurance Policy Cover Rental Cars?

When you’re renting a car for your personal use, your standard auto insurance policy will most likely give you some basic protection, which means you might not necessarily need to purchase rental car insurancein El Paso, TX. Of course, this varies for every car insurance policy, and you may find after looking at yours more carefully that there could be some gaps in coverage.

Keep in mind that any time you rent a car, the representative working for the rental agency is going to do their best to convince you that you need to purchase their coverage—it’s part of their job, and it’s one of the ways they can make bigger margins on each rental. But don’t let them be the factor that sways you—you can save some money by coming to the rental agency armed with information about the kind of coverage you already have through your own insurance (and, in some cases, through your credit card).

Here’s what you should know about rental coverage with your car insurance in El Paso, TX.

What do you need?

If your primary insurance provider is to cover a rental car, you’ll need liability, collision and comprehensive coverage. Liability insurance covers damages to other vehicles and properties, and injuries to other people. Comprehensive insurance covers damages to the vehicle that aren’t the result of an accident, such as theft or vandalism. Collision coverage covers damages to the car that occur as a result of an accident.

Comprehensive and collision coverage are not always required in every state, but if you’re going to be covered on a rental car, you’ll need those coverages on your policy.

Make sure you know what your policy limits are—depending on the circumstances, you might require a certain amount of coverage to be able to cover damages that occur to rental cars. In addition, if the damage to a rental car is considered a result of your own negligence, you might be considered at fault and not covered.Keep in mind also that some credit card companies do offer rental car insurance if you pay for the car with that credit card.

Why go with rental insurance?

There are some circumstances in which it does make sense to go through the rental company for car insurance. The collision damage waiver (CDW) you get from a rental company is going to be the most convenient and comprehensive way of protecting you from personal financial liability, as it acts as a waiver of responsibility—purchasing it results in the company surrendering the rights it has to charge you for damage. You may purchase just that CDW instead of a more thorough insurance plan.

And of course, if you do not typically drive and do not have auto insurance as a result, you’re going to need to purchase rental insurance when you rent a vehicle.

For more information about rental car insurance in El Paso, TX, contact Pan American Insurance, offer rental car coverage to customers with full policies through our company.

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