When it’s time to travel, the last thing you probably want to think about is your car insurance. But if you are renting a car while away, you’re likely wondering if your car insurance covers a rental car in another country. It’s a good thing to understand so that you have a stress-free and safe trip.
Here are a few things to think about.
Traveling in North America
If you are traveling to Canada and renting a car, the good news is that you are likely covered without doing anything extra. Most major insurance companies cover your rental car while in Canada.
If you are traveling to Mexico, however, you’ll need to obtain specific rental car coverage in Mexico. This is easy enough to do through the rental car company. If you generally decline rental car coverage in other circumstances, you’ll want to purchase it for a rental car in Mexico.
Traveling Elsewhere
There are options for car insurance when traveling elsewhere, especially in Europe. Usually your liability coverage comes with the price of the rental car. This is the coverage that protects you from having to pay out-of-pocket if you cause an accident. It covers the injuries to other people and damage to another person’s property.
The more robust coverage options, collision and comprehensive are not included, however. But there are options to gain this type of protection.
The first option is to purchase a collision damage waiver, or CDW. This is not really insurance, but it is an agreement that you will not be financially liable if the rental car is damaged. Some countries require this coverage and it may be covered by your credit card company. Be sure to call your credit card company before you travel to find out exactly how they will cover car insurance for a rental car in another country.
Also, you will want to make sure that your coverage extends across borders if you are traveling somewhere like Europe with close borders.
What is a Collision Damage Waiver?
We mentioned the collision damage waiver earlier. While you credit card company may offer you protection, this protection will likely require you to pay a deductible should you have an accident. Purchasing a CDW, in most cases, releases you from these issues.
A collision damage waiver can add significant cost to your rental. You will have to decide whether the added cost is worth it. It just may be when you factor in the potential for out-of-pocket expenses and a likely increase to your insurance premiums should you have an accident in a rental car in another country.
The bottom line is that you should understand your own insurance company’s rules regarding coverage abroad. And if you’re not happy with your current insurer, use the InsuranceWins form to shop around for the best policy at the best price.
