Even though it’s for our own benefit, purchasing additional insurance can make us think twice. Do you really need one? Doesn’t your existing insurance cover you already?
Michigan law requires every car owner to have no-fault insurance. No-fault insurance pays for medical costs, wage loss, and damage to property during a car accident, regardless of who is at fault.
What is Rental Car Insurance?
Rental car insurance is supplemental and optional coverage that you can get from an auto insurance provider. It covers the cost of a rental car in case of an accident.
There are four types of rental car insurance that renters can buy from the car rental company.
Collision Damage/Loss Damage Waiver
A collision damage waiver protects the renter from financial liabilities in the event that the rental vehicle gets damaged or stolen. The rental company waives its right to collect damages and sue the renter for any damages incurred on the car during the rental period.
Since Michigan’s No-Fault Insurance does not cover this, it would be a wise decision to get this waiver. It is also a good idea to know everything you need to know about your existing auto insurance. For example, you may have already added a supplemental that covers collisions for your own car and cars that you rent.
Supplemental Liability Protection
No matter how careful you think you are, accidents can still happen. This product covers damages that you may cause to other cars and properties. It will also pay for the medical expenses of other people injured during the accident.
Supplemental liability cover limits can be as high as $1 million. If your No-Fault Insurance has the minimum liability cover ($50,000 per person and $100,000 per accident), this additional insurance will give you more protection.
Personal Effects Coverage
This product covers your personal valuables in case they get stolen from the rental car. However, if you have homeowner’s or renter’s insurance that covers personal belongings that are off-premises, then you may forego this insurance.
Personal Accident Insurance
This insurance will cover medical costs if you or a passenger gets injured in a car crash while driving the rental car. Michigan No-Fault Personal Injury Protection covers medical expenses arising from auto accidents, as long as it is within the US or Canada. However, policies with limited PIP benefits may not be sufficient to cover rental car accidents.
What If I Used a Credit Card to Pay For My Car Rental?
Some major credit cards provide protection for car rental accidents. However, coverage varies per credit card provider. Some cards offer supplemental coverage to an existing primary policy. In addition, some providers will pay for covered damages before the insurance company comes in.
Of course, most credit card providers do not cover all types of rental vehicles. For instance, rental luxury cars, trailers, RVs, and motorcycles are usually excluded from the rental insurance provided.
Always check with your credit card provider if you have some questions on what they will actually cover in case of an accident.
Do I Need to Buy a Supplemental Rental Car Insurance?
This is the crucial question for most people who are renting cars. It is always a good idea to check with your auto insurance provider on what they cover with regards to rental car accidents.
Here are the people who will significantly benefit from rental car insurance.
- Drivers whose insurance policies do not cover rental cars.
- Drivers without or whose credit card does not provide rental car accident coverage.
- Drivers without a Michigan no-fault policy.
- Drivers with limited Personal Injury Protection or liability insurance.
- Drivers whose homeowner’s or renter’s insurance does not cover their valuables.
- Drivers who rent the vehicle for more than 30 days.
In the end, getting rental car insurance is worth it. It is affordable and gives you peace of mind that you and your family are covered during your trip. Driving with a gnawing doubt in the pit of your stomach is never good. At most, getting rental car insurance will simply add a few dollars to your rent.
Involved in a Rental Car Accident? Contact The Clark Law Office Now.
It does not matter if you are driving your own car or a rental. You will need the expert help of an experienced Michigan personal injury lawyer when you get involved in a vehicular accident. Our Lansing car accident lawyers will help you get the compensation that you deserve.
Call us at (517)-347-6900, and let us discuss how we can help you. You may also email email@example.com or fill out our online contact form.