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Texas Car Rental Insurance

Texas car rental insurance isn’t much different than car rental insurance in any other state.  In fact, most people wonder if purchasing car rental insurance in Texas is necessary when they rent a car.  Honestly, it is better to have it and not need it than to need it and not have it.  TX car rental insurance is easy enough to understand if you follow and remember these guidelines:

Coverage And Waivers For Texas Car Rental Insurance

If you’ve ever been to the rental counter of a car rental company, you know how confusing it is when they offer you optional coverage that you can choose to waive.  Any indecision usually comes from not knowing what your own personal auto insurance covers.  Also, some credit cards offer damage coverage to rental cars.  If you’re unsure what to do, make sure to check your own Texas auto insurance policy and credit cards before your trip.  That way, when you reach the counter, you’ll be able to make an educated decision.

If you’re not convinced you should check your coverage before a trip, here are some reasons why you should:

  1. Liability:  If your rental car is damaged or stolen, the rental car company will hold you totally responsible.
  2. Savings:  If you choose to buy the coverage that the rental company gives you, this will add anywhere from $12 to $25 per day to your rental car bill.  If your own personal insurance covers TX car rental insurance, then you’ll end up paying more for something that you don’t need.
  3. Convenience:  The only way to change your rental coverage after you’ve left the lot with your car is to return to the lot and start a completely new rental agreement.  This is highly inconvenient and time consuming.

Texas Car Rental Insurance Coverage

If you find out that your personal car insurance doesn’t cover rental cars, you should think about purchasing the coverage that the rental company offers you.  There are 4 main policies that they will offer you while you’re at the counter.  Make the decision that is best for you.

  1. Collision Damage Waiver (CDW)/Loss Damage Waiver(LDW)/Physical Damage Waiver (PDW):  These aren’t really collision insurance, but for a daily fee they waive the right for a car rental company to demand money from the renter in the event of an accident.  However, this does not include third party damages (damages to someone else’s car).  Usually your personal car insurance covers third party damage, but make sure to check before your trip.
  2. Liability Insurance Supplement (LIS):  Besides the liability insurance supplement, the rental company may offer supplemental liability coverage that will pay over and above what your personal insurance covers.  If you don’t have liability coverage, then you should purchase what the rental company offers you.
  3. Personal Accident Insurance (PAI):  Personal accident insurance provides a one-time payment for you or a passenger in the event of death or maiming from an accident.
  4. Personal Effects Coverage (PEC) or Personal Property Insurance:  Really, all this does is pay if you have anything lost or stolen from the car.  This is just optional, though, and should be purchased only on an as needed basis.

Credit Card Coverage For Texas Car Rental Insurance

Some credit cards will cover damage and theft to your rental car.  This may replace the need for CDW, LDW, or PDW, but you should always check with the credit card company to see what kind of vehicles are covered and if it is primary or secondary.  Many credit card companies only become primary insurance only in the event that you don’t have any personal collision insurance of your own.

It is important to remember that most credit card companies don’t provide coverage for more expensive rentals.  Before your trip, call and find out what cars are eligible for your card’s protection.  They usually provide coverage on cars and exclude expensive rentals like SUV’s, exotic cars, etc.

You might also want to consider purchasing insurance coverage from your rental car company simply because if you get into an accident, claiming the accident on your personal car insurance may make your rates go up.  You may pay more per day for your car, but at least your car insurance won’t be affected if you get into an accident.

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