Do I Need to Purchase Rental Car Insurance?

In many instances, people are not sure if they need rental coverage, so it is important to call out what is covered and what is not, so an insured can decide what best fits their needs.   

That said, there are still situations where rental car insurance could be important, so it’s important to review your personal coverage.  

If you do not have a personal auto policy, you will need to purchase insurance through the rental car company.  

Rental car insurance is the coverage that a rental car company offers to you when you rent a car. This does not refer to a loaner vehicle for when your car is being worked on, etc. The coverage usually includes liability, loss/collision damage, personal accident, and personal effects.  

What is important to note is that if your personal auto policy includes liability, collision, and personal protection, then you may not need rental car insurance.  

So, to answer the frequently asked question “Do I need to purchase rental car insurance if I have a personal auto policy?” 

The answer is: If you choose NOT to purchase coverage through the rental car agency, and a situation happens where the vehicle needs to be repaired, you may be responsible for “loss of use” which means you could be paying for the lost rental income while it is being repaired and cannot be rented. Also, the State of Michigan does not cover diminished value. Diminished value is the loss in market value that occurs when a vehicle is wrecked and repaired. 

If you have questions, or want more information on rental car policies, reach out to our team today!  

*This doesn’t include commercial or oversize vehicles, please reach out to our team for further information. 

 **Not applicable when renting outside of U.S. Territories and Canada.