It doesn't matter if you rent a car on vacation or for business, it is important to have insurance. You can do this by reviewing your auto insurance policy before renting a car. Typically, your policy will cover the same deductibles and limits that you have when you own your car. However, your coverage will be different depending on the type of rental car you rent. To see exactly what you are covered, read the terms of your policy.
Your employer might have insurance if you rent a vehicle on business. You may have to buy additional coverage if your employer doesn't offer it. To help protect your vehicle and passengers, most rental car companies offer supplemental coverage. This insurance may cost $15-30 per person, depending on where you rent the car. You can add this coverage to your auto policy or purchase it through your car rental company.
Additional insurance can be purchased through your credit card. Many credit cards offer additional insurance coverage. You may not be covered adequately by this coverage, so you should check with the company before you rent your car. Some credit cards only provide collision coverage for a period of 15 days. You will also need to pay a deductible. The deductible is non-refundable. You could be held responsible for damages.
Car rental companies are required to carry liability insurance in most states. This coverage protects you if you cause an accident that injures someone else. You will need to ensure that your policy provides at least $25k of bodily liability coverage per individual and at least $50,000 per accident.
You can ask your agent to verify that your insurance policy covers you adequately. You may need to purchase supplemental insurance if you have a higher deductible or are traveling on business. Additional coverage may be recommended by your rental car company, so make sure you ask.
You may also choose to rent a car from a car sharing service. This is a popular way to rent a car, but the coverage is not standardized and can vary widely. You can often find this information on the service's website. Most services will require that you sign an agreement which states that insurance will be paid.
A credit card can be used for additional rental car insurance. This coverage can provide some additional protection for those who already have primary insurance. It is important to carefully read and understand the credit card policy terms. Some credit cards do not cover certain types or restrictions of vehicles. In other words, if your plan is not to rent a luxurious car, you might not have sufficient coverage. A deductible will be required to obtain coverage.
California requires you to have liability insurance in order to rent a car. You will also need to ensure that your policy covers the state's minimum requirements for auto insurance.