Do I Need Rental Car Coverage? What Drivers in Rhode Island Should Know
When renting a car—whether for a vacation, business trip, or while your own vehicle is being repaired—you’re likely to face the same question at the rental counter: Do you want to add insurance coverage to your rental? For many drivers, it’s unclear whether they need rental car insurance or if their existing auto policy already provides protection.
At The Slocum Agency, Inc., based in Warwick, Rhode Island, we frequently help our clients understand how rental car coverage works and whether it’s worth purchasing. Here’s what every Rhode Island driver should know before saying “yes” or “no” to rental car insurance.
What Is Rental Car Coverage?
Rental car coverage is a type of insurance that protects you from financial loss if something happens to the vehicle you’re renting. The rental company may offer several types of coverage, including:
Collision Damage Waiver (CDW) or Loss Damage Waiver (LDW): Covers damage to the rental car in case of a collision, theft, or vandalism.
Liability Coverage: Pays for damage or injury you cause to other people or property.
Personal Accident Insurance: Covers medical expenses for you and your passengers.
Personal Effects Coverage: Reimburses for theft or damage to your belongings in the rental car.
Does My Personal Auto Insurance Cover Rental Cars?
In many cases, yes. If you already have a personal auto insurance policy in Rhode Island, it may extend to rental vehicles—but only under certain conditions:
✅ Liability Coverage: Your auto policy typically includes bodily injury and property damage liability, which often carries over to rentals.
✅ Collision & Comprehensive Coverage: If your policy includes these coverages, they usually apply to a rental car as well—provided the rental is for personal use.
⚠️ Deductibles Still Apply: Even if your coverage extends to a rental car, your policy's deductible would apply in the event of a claim.
⚠️ No Coverage for “Loss of Use”: Many personal policies don’t cover rental company fees for the time the car is out of service due to repairs.
What About Credit Card Rental Insurance?
Some credit cards offer rental car protection when you use the card to pay for the rental. This coverage is often secondary, meaning it kicks in after your auto insurance pays out. However, some premium cards offer primary rental car coverage.
Be sure to check:
Which card benefits apply
If it covers the country you're renting in
What types of vehicles and rentals are excluded
When Should You Consider Buying the Rental Company’s Insurance?
Even if your auto policy or credit card provides some coverage, there are situations where purchasing additional insurance from the rental company might make sense:
🔹 You Don’t Have Collision Coverage: If your current policy only includes liability, adding the rental’s CDW could offer valuable protection.
🔹 You Want to Avoid Filing a Claim: Using the rental company’s coverage could prevent a claim on your personal insurance, avoiding premium increases.
🔹 You’re Traveling for Business: Business use of a rental may not be covered by your personal policy or credit card.
🔹 You Don't Want to Worry About Deductibles: With a rental company’s CDW, you often won’t have to pay out-of-pocket for damage.
What If I Need a Rental While My Car’s in the Shop?
If your vehicle is being repaired after a covered accident, your own auto policy might include Rental Reimbursement Coverage (also called Loss of Use). This pays for the cost of a rental vehicle while yours is being fixed—but only if you’ve added it to your policy before the accident.
If you're not sure whether you have this coverage, we recommend checking with your insurance agent (like us at The Slocum Agency!).
Quick Tips for Renting a Car
📋 Review your personal auto policy before you rent.
💳 Call your credit card company to confirm benefits.
🚗 Stick to standard vehicle types to ensure coverage applies.
📝 Take photos of the vehicle before and after renting.
🛑 Decline duplicate coverage if you’re already protected—but don’t skip coverage altogether.
Need Help Understanding Your Coverage? We’ve Got You Covered.
At The Slocum Agency, Inc., we help drivers in Warwick, Providence, and across Rhode Island navigate the ins and outs of auto insurance—including rental car coverage. Whether you're planning a trip or want to review your policy, our team of local insurance counselors is here to help you make informed decisions.
