Understand Rental Auto Damage Waiver Options

man with car documentsAuto rental damage waiver coverage is optional when you rent a vehicle in the US. It’s been around for a long time, but remains a misunderstood option for many people.

People often believe their personal auto policy covers these risks–and sometimes they’re correct. However, in some cases, their vehicle policy is inadequate to provide adequate protection.

When you’re at home and driving your own vehicle, you’re adequately protected if you have a complete auto policy. However, when you rent a car, you may or may not have adequate protection.

The Pros

You’ll have adequate coverage for most com liability losses if your rental car damages property or injures other people. You’ll also have collision, theft, towing fees and vandalism coverage. You’re covered as long as you adhere to the rental contract, without doing illegal things, like drag racing. Collision damage waiver coverage also transfers any risks from you, the renter, to the rental company. Some credit cards include damage waiver insurance if you use them to rent a car.

The Cons

This coverage is expensive for short-term rentals. Car rental companies are not insurers, and the coverage you buy may still have a deductible.  Always check with your agent or policy to learn what coverage your policy will provide.

To clarify any confusion, contact the Mike Leonard Insurance Agency in Carrollton, TX to get valuable advice. Mike Leonard has protecting people in the Carrollton area since 1982. He will give you all the info you need to make the best decision when you rent a car.