Few topics generate as much debate within the Insurance community as the topic of “should you purchase the rental agencies insurance when you rent a car?”

Most people would say NO, because “if I have auto insurance why should I pay the extra cost?” It is often more expensive than renting the car!


There are typically 3 gaps in coverage which can ONLY be filled by purchasing insurance from the rental agency:

  1. Diminution of Value: the reduction of resale value due to damage caused to the car while YOU were renting.
  2.  Loss of Use: is loss of income while the car is unable to rent.
  3. Commercial Usage is NOT covered: When renting the vehicle in your personal name NOT in the name of your business.


  1. Ask the rental company if you are responsible for “Diminution of Value” and “Loss of Use.”
  2.  Check with your broker to verify what your policy covers for rental cars.
  3. Know what additional coverages your credit card offers (some cards provide additional coverage when renting a car).

There is no hard & fast rule when it comes to rental car insurance. Understanding gaps in coverage and knowing what questions to ask should help you mitigate loss and make an educated decision.

At Weaver & Associates, our main goal is educating and protecting our clients from risks associated with every day life.

Please contact us with any question you may have, we are happy to help!