Should you get the insurance

PERSONAL FINANCE | ADVICE

When you rent a car, a customer service rep may try to sell you rental-car insurance. Rental insurance may protect you from having to pay if the rental is stolen or damaged. But in some circumstances, you may not need to purchase additional coverage. For example, if you already have full-coverage car insurance, your policy may extend to the rental.

Bank-rate's insurance editorial team covers scenarios where you may need rental insurance and explains how some common types of rental-car insurance work.

WHEN DO YOU NEED RENTAL-CAR INSURANCE?

You do not have any type of insurance.

You do not have collision or comprehensive coverage.

You do not want to pay a deductible.

TYPES OF RENTAL-CAR INSURANCE

Rental-car insurance is similar to regular auto insurance. You can select the type of coverage and the level of coverage you want based on your needs. However, the types of rental-car insurance are much different from auto insurance.

Before getting rental-car insurance, you should be aware of your options. The most common types of rental-car insurance include:

•Loss-and-damage waiver: Sometimes called the collision damage waiver, this is a waiver rather than a true policy. It essentially says that the rental company will not come after you in the event that the rental car is damaged or stolen. However, if you have collision and comprehensive car insurance, this may be included in your policy.

•Supplemental liability protection: This covers damage you do to other vehicles or property. However, your own liability insurance may cover these instances, even when you are driving a rental car.

•Personal accident protection: Personal accident protection covers the medical costs for you and any passengers if you are involved in an accident. Again, if you have personal injury protection or medical-payments coverage under your existing policy, you may already be covered.

•Personal-effects coverage: This coverage pays for any belongings that may be stolen from your rental car. In this case, your homeowner's insurance or renter's insurance policy may offer similar coverage.

While there are many different types of rental-car insurance, it does not cover everything. For example, this type of insurance doesn't reimburse you for the cost of renting a car.

However, you may be re-imbursed for rentals in some circumstances if you have rental reimbursement coverage — which is typically an endorsement you can add to your existing policy for an extra cost. Note that this coverage provides reimbursement only if you're renting a car because your insured vehicle has suffered a covered loss.

How much is rental-car insurance?

The cost of rental-car insurance depends on the company you buy coverage from, the state you rent in, the type of car and how many miles you are driving. Purchasing add-on coverages will also increase the cost.

Does my credit card offer rental-car insurance?

Many credit-card companies offer rental-car insurance as one of the benefits for cardholders. However, rental-car insurance provided by your credit-card company is usually secondary insurance. That means if you get into an accident or the car gets stolen, your auto-insurance company will get billed first. If that is the case, your deductible will apply to the claim.

Credit-card companies offering primary rental-car insurance is less common. Primary insurance does not go through your personal auto insurance, so you do not have to pay a deductible. You can call your credit-card company to determine what type of insurance it offers.

Most major credit-card companies offer rental-car insurance for cardholders, but you usually have to pay for the rental car using the card and rent the car in your name.

Which insurance providers offer rental-car insurance?

Most major car-insurance providers automatically provide rental-car insurance coverage at no additional cost beyond your premium. However, it is import-ant to remember that the coverage you carry on your policy is what will also apply to your rental. If you have liability only on your personal auto policy, you may want to consider bridging the gap with a loss-and-damage waiver.

Some companies offer stand-alone rental-car coverage policies. The rates for these policies can be cheaper than a standard auto policy, but the coverage provided is not as robust.