You will need to ensure that you have adequate coverage, regardless of whether you are renting a car for vacation or business. Before you rent a vehicle, it is a good idea to review your auto insurance policy. Typically, your policy covers the same deductibles or limits as you have when your car is yours. The type of rental vehicle you use will affect your coverage. You'll need to read the terms and conditions of your policy to find out exactly what you're covered for.
You may have the coverage of your employer if you are renting a car for work. If you don't have the coverage you need, you might need additional coverage. To protect you and your passengers, many rental car companies offer supplemental insurance. This can cost $15-30 per day depending on which car rental company you choose. You can add this coverage on to your auto insurance or get it through your car hire company.
You can also purchase extra insurance through your credit card. Some major credit cards include supplemental insurance coverage. You may not be covered adequately by this coverage, so you should check with the company before you rent your car. Some credit cards offer only 15-day collision coverage. The deductible is also required. The deductible is non-refundable. You could be held responsible for damages.
In most states, car rental companies must have liability insurance. This coverage protects you if you cause an accident that injures someone else. You should ensure that your policy covers at least $25k for bodily injury coverage per person and $50,000 for liability coverage per accident.
If you're unsure whether your insurance policy will provide you with enough coverage, you can ask your insurance agent. Supplemental insurance may be required if your deductible is higher or you are traveling for business. You may also be recommended by your rental car company to purchase additional coverage.
You might also consider renting a car via a car sharing site. This is a popular way to rent a car, but the coverage is not standardized and can vary widely. You can often find this information on the service's website. Most services will require that you sign an agreement which states that insurance will be paid.
You can also purchase rental car insurance with your credit card. This coverage may provide some supplemental protection if you already have a primary auto insurance policy. Be sure to read all terms and conditions. Some credit cards will only cover certain types of vehicles or restrictions. You may not be able to get adequate coverage if you don’t intend on renting a luxury vehicle. A deductible will be required to obtain coverage.
If you're renting a car in California, you'll need to purchase liability insurance from a third-party company. Your policy must also cover you for state minimum auto insurance requirements.