Do I need to buy collision insurance for a rental car if I have auto insurance?

No. You don’t need to buy collision insurance (called: Collision Damage Waiver, Loss Damage Waiver) for a rental car when you have auto insurance. But, it might be wise if you did. Read on for more information.

Contact your Agent/Company Representative:

If your auto insurance includes Comprehensive and Collision coverage it is likely your rental car will be covered for physical damage. Every state and company are different, so call your agent or company representative to confirm how your policy will respond.

New York is an exception. This post will explain the unique rental car coverage provided by an Auto Policy in New York.

Why Purchase Collision Damage Waiver?:

If you are not in New York State, Collision Damage Waiver may be worth considering regardless of whether or not you have appropriate auto insurance coverage. Why? Damage Waivers will remove your responsibility for expenses and fees that car rental companies attempt to collect, that many auto insurance policies will not pay such as:

  • Diminution of Value
  • Rental Fees
  • Administrative Fees
  • Loss of Use

Damage Waiver will also remove the potential for a claim negatively affecting your personal auto insurance rates along with the hassle of dealing with a claim.

Explore Credit Card Options:

If interested, take a look at this post regarding American Express Premium and Primary Rental Car coverage. American Express offers some of the best rental car insurance available on a credit card. This coverage is worth consideration by people with good insurance coverage if only to avoid the claim on your policy.

Two other posts on Primary Rental Car Insurance that provide good information:

Author: Jeff Ryan, 35 Yr Brokerage Owner, Reader of Policies, Insurance Geek
Source: Quora

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