Dread getting to the rental car counter and wondering how much insurance coverage you need? The good news is that if you have Allstate insurance for your personal vehicle, you are likely covered for your rental car. However, there are a few reasons why you might want to purchase additional coverage—especially if you drive an older car that has racked up many miles and want to rent a newer model.
What to Know About Allstate and Rental Cars
As always when renting a car, it's a good idea to take a look at your existing policy to find out exactly what coverage you have. Typically, you're covered in a rental car to the limits of your own policy. That means if you drive a brand new SUV and rent a compact car, you're good to go. But if you drive an older, less valuable car and rent a brand new model with many bells and whistles, it may get tricky.
If you decide that you need additional coverage, check into whether your credit card offers primary or secondary rental car insurance as a benefit. You might decide to purchase the collision damage waiver (CDW) or loss damage waiver (LDW) offered at the rental car counter, or you could check out affordable third-party insurance options.
6 Reasons to Buy Car Rental Insurance
There are several situations in which you might want to consider additional coverage.
You have a high deductible. If your auto insurance policy has a high deductible, you'll have to pay up to that amount if something happens to the rental car. If this worries you, it might be worth it to add coverage.
You recently had an accident. A recent fender bender or other incident can impact whether you buy over-the-counter insurance for your rental car so you don't risk your rates going up if you get into an accident.
Your rental is nicer than your own vehicle. Renting a fancy car to take a break from your basic sedan? It's important to remember that you're only covered to the limits of your personal auto policy.
Your own coverage is spotty. If your Allstate auto policy isn't comprehensive, you might want to buy the CDW. If you have skimpy health insurance, you might want to pick up personal accident insurance. If you don't have liability coverage, you may want to buy that.
You're going international. In general, Allstate won't cover rental cars outside the United States. Do your homework on what protections are offered by your credit card. It may be necessary to pony up for rental car insurance from the rental car company.
You're on a business trip. Your personal policy might not cover business rentals, so make sure you check with your company about the requirements.
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