Do you need rental car insurance?


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When renting a car, many people opt out of purchasing rental car insurance. While it is true that personal auto insurance policies still keep you protected when driving a rental car,that protection may not cover all expenses.

What does personal auto insurance cover?

  • Personal injuries
  • Property damages
  • Collision damages (if your policy has collision insurance)

This coverage applies to any type of car you choose to rent.However, as with your own vehicle, you still are responsible for any deductibles on your policy when driving the rental car.

What does personal auto insurance NOT cover?

  • Rental company’s lost income

If the car you rented is getting repaired after an accident,you could be charged for the company’s “loss of use” on the vehicle during that time. The company may also charge you for lost rental insurance income, which could be hundreds of dollars more.

  • The vehicle’s replacement cost (if in an accident or stolen)

Your personal auto insurance agency determines a car’s worth based on its actual cash value in Massachusetts. However, the rental company has the right to determine its own amount for replacement cost, regardless of the specific model’s actual worth.

In a recent Boston Globe article, reporter Peter Demarco  tackled credit cards providing coverage for a rented automobile, make sure you contact the credit card company prior to renting your automobile.

While it can be beneficial to purchase rental car insurance,be sure you fully understand all of the options and costs prior to doing so. provides a list of trustworthy rental car companies near you.Additionally, contact your local insurance company with any questions regarding your own policy and whether rental car insurance will be right for you.

As always, Vargas & Vargas Insurance is committed to keeping Massachusetts’ families and businesses stay safe and protected. For questions regarding Home, Auto, life insurance policies and more, call their friendly agents today at877-550-0025.