The short answer is, yes.

While your auto policy coverages DO extend to your rental car there are certain things that your auto policy will not cover.

In the case of an accident, your auto policy will pay for your liability damages but it will not pay for the contractual obligations found in the rental car agreement, which is why we always recommend purchasing the collision deductible waiver (CDW) or loss deductible waiver (LDW).

Now what does this mean?

This means, if you rent a car and you are involved in an at fault accident, your insurance will pay for bodily injury, property damage and damage to the vehicle. There are some things that your personal auto policy is not obligated to cover, and those are the obligations in the rental car agreement or the rental contract.

Three things that may impact you financially if you choose not to purchase the collision deductible waiver, or loss deductible waiver:

  1. You could be responsible for paying the daily rental fee while the vehicle is being repaired. Because the rental car company cannot rent the vehicle while it is being repaired, therefor losing money, they can charge you the rental fee for everyday that vehicle is undergoing repairs. We have seen people get charged in excess of 30 days or more.
  2. If the rental car is a total loss, the credit card on file can be charged the full price of a brand-new car, this can result in a credit freeze and possibly impact your credit score.
  3. Most personal auto policies will only pay the deprecated amount of the vehicle and you could be left to pay the balance to get a new vehicle replacement.

Do you have to purchase the CDW or the LDW, no you do not, but remember there can be financial consequences if you do not. Is it worth the risk? That is up to you 😊.

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