Is Rental Car Insurance Worth It?

Is Rental Car Insurance Worth It?

Planning to rent or lease a car? Renting or leasing is a great alternative to owning a car. It does not  give you complete ownership but you do avoid the liabilities of owning one. This includes down payments, rising COE prices, maintenance costs and depreciation.

Nonetheless, renters are usually faced with the decision to purchase rental car insurance. This raises the question; is rental car insurance worth it? Let’s take a look at the complexities of rental car insurance and why you might need it:


How Does Rental Car Insurance Coverage Work?


How Does Rental Car Insurance Coverage Work?

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Rental companies typically offer insurance options that protect you from certain liabilities. This includes damage or theft to the rented vehicle. In some cases, your personal coverage may already provide some level of protection for rental cars.

This is when your rental car insurance becomes secondary coverage, kicking in after your personal insurance pays its portion. There are also different types of rental car insurance including:


Collision Damage Waiver (CDW)

Collision damage waiver or loss damage waiver, covers you against any damage or loss to the rental. This is one of the most common and important types of rental coverage.

It may also cover towing and storage charges, impound fees and other charges. You probably don’t need this if you already have personal collision insurance.


Personal Accident Insurance (PAI)

PAI includes medical, ambulance and death benefits for you and your passengers. PAI is optional and may not be necessary if you already have health insurance that covers car accidents.

It can provide an additional peace of mind however, especially when travelling with family and friends.


Personal Effects Coverage (PEC)

PEC covers theft possession from the rental car based on a set dollar amount. However, certain types of items may be excluded from the coverage such as animals and money.

It is best to consult with your rental car insurance service providers before making a purchase.


Supplement Liability Protection

This provides additional liability coverage beyond the limits of your personal insurance policy. It covers damages you may cause to property or injuries you may inflict on others while driving the rental car.  

This is particularly useful if you’re concerned about exceeding the minimum liability coverage required by law.


Benefits of Rental Car Insurance


Benefits of Rental Car Insurance

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Peace of Mind

Considering the fact that the car is not yours, driving a rental can be stressful. Having rental car insurance will give you peace of mind. This can alleviate a significant amount of stress, allowing you to focus on your trip.


Protection from Financial Loss

Insurance can protect you from significant financial loss in the event of an accident. This also includes theft, or damage to the rental vehicle.

Without insurance, you could be held responsible to pay for repairs or replacement out of pocket. This can even amount to thousands of dollars!



Opting for insurance can also offer convenience. Rental car insurance allows you to address any issues directly with the rental company.

This will help you avoid the hassle of filing claims with your personal insurance company, potentially affecting your rates.


Coverage for Additional Expenses

You may get coverage for additional expenses depending on the type of insurance you choose. This includes expenses like towing fees, storage charges, and impound fees.

These costs can add up quickly in the event of an accident or theft, saving you money in the long run.


Liability Protection

Causing damage and injury can have substantial consequences. Rental car insurance typically includes liability coverage too. This can help shield you from lawsuits and legal claims, ensuring you’re not held accountable for.


Why Should You Check the Car Insurance Coverage When Renting a Car?


Understanding your coverage is essential before hitting the road. Knowing the extent of your insurance protection allows you to make informed decisions. This can help you avoid unexpected expenses during your rental period.

You can identify any gaps in the coverage and determine whether additional protection is necessary, ensuring you are covered for potential risks. With KINTO, renting a car comes with the added perk of comprehensive insurance.  

Unlike traditional rental companies, we prioritise simplicity by offering an all-inclusive package with no hidden cost! This will cover everything from:

  • Personal accident benefits for authorised drivers and passengers (up to $10,000).
  • Third party injury with unlimited claim.
  • Third party property damage (up to $5million).
  • Medical expenses for authorised drivers and passengers ($1,000).

Ultimately, this will give you some peace of mind and an added protection on top of your existing insurance plan.


Is Rental Car Insurance Worth It?

Picture this: you’re on a road trip with your family, driving a rental car, and unfortunately, you’re involved in an accident.

Without rental car insurance, you could be left responsible for covering the costs of repairs to the rental vehicle. This also includes medical expenses for injuries and potential liability claims from other parties involved.

Long story short, rental car insurance is definitely worth it. It can keep you, your finances and those around you protected during unexpected events. Our comprehensive insurance can give you that added layer of protection, ensuring you’re prepared for any unforeseen circumstances.

From minor fender benders to major collisions, you can rest assured that you will be taken care of!

Lease a ride with KINTO and get an all-inclusive package of perks and benefits. Get in touch to find out more.

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