AAA Rental Car Coverage: What You Need to Know

Posted by Presiden 2020 February 15, 2024 Post a Comment

Renting a car is a great way to get around when you're traveling. But before you hit the road, it's important to understand the different types of rental car coverage available and what they cover.

AAA offers a variety of rental car coverage options that can help you protect yourself financially in the event of an accident or theft. In this article, we'll discuss the different types of AAA rental car coverage and how they can benefit you.

AAA's rental car coverage options can provide you with peace of mind when you're renting a car. By understanding the different types of coverage available, you can choose the option that's right for your needs and budget.

aaa rental car coverage

Peace of mind while renting a car.

Collision Damage Waiver (CDW)
Loss Damage Waiver (LDW)
Liability Insurance Supplement (LIS)
Personal Accident Insurance (PAI)
Personal Effects Coverage (PEC)
Emergency Roadside Assistance
Towing and Labor Coverage
Rental Car Reimbursement
Diminished Value Coverage
Gap Coverage

Choose the right coverage for your needs.

Collision Damage Waiver (CDW)

Collision Damage Waiver (CDW) is an optional insurance coverage that can be purchased when renting a car. It waives your financial responsibility for damage to the rental car in the event of a collision, regardless of who is at fault.

CDW is typically offered by rental car companies at a daily rate. The cost of CDW varies depending on the type of car you are renting and the rental company you are using. However, it is generally a good idea to purchase CDW, as it can save you a significant amount of money in the event of an accident.

It's important to note that CDW does not cover all types of damage to a rental car. For example, it typically does not cover damage caused by theft, vandalism, or driving under the influence of alcohol or drugs. Additionally, CDW may not cover damage to the underside of the car or to the tires.

If you are planning to rent a car, it is important to carefully review the terms and conditions of the rental agreement before purchasing CDW. You should also consider your own personal insurance coverage and whether or not it provides coverage for rental cars.

In summary, CDW is an important type of rental car coverage that can protect you financially in the event of an accident. However, it is important to understand the coverage limitations before purchasing CDW.

Loss Damage Waiver (LDW)

Loss Damage Waiver (LDW) is an optional insurance coverage that can be purchased when renting a car. It waives your financial responsibility for damage to or theft of the rental car, regardless of who is at fault.

Covers damage to the rental car:
LDW covers damage to the rental car caused by collision, theft, vandalism, or other covered events.
Covers theft of the rental car:
LDW covers the cost of replacing the rental car if it is stolen.
Typically offered by rental car companies:
LDW is typically offered by rental car companies at a daily rate. The cost of LDW varies depending on the type of car you are renting and the rental company you are using.
May have a deductible:
LDW may have a deductible, which is the amount you are responsible for paying out of pocket before the insurance coverage kicks in. The amount of the deductible varies depending on the rental car company and the type of coverage you purchase.

LDW is an important type of rental car coverage that can protect you financially in the event of damage to or theft of the rental car. However, it is important to understand the coverage limitations and the deductible amount before purchasing LDW.

Liability Insurance Supplement (LIS)

Liability Insurance Supplement (LIS) is an optional insurance coverage that can be purchased when renting a car. It provides additional liability coverage beyond what is typically included in the rental car company's insurance policy.

LIS can be especially beneficial if you are planning to drive the rental car in a state or country where the minimum liability insurance requirements are higher than in your home state. LIS can also provide additional coverage for bodily injury and property damage in the event of an accident.

Here are some key details about LIS:

Provides additional liability coverage:
LIS provides additional liability coverage beyond what is typically included in the rental car company's insurance policy.
May be required in some states or countries:
LIS may be required in some states or countries where the minimum liability insurance requirements are higher than in your home state.
Can provide additional coverage for bodily injury and property damage:
LIS can provide additional coverage for bodily injury and property damage in the event of an accident.
Typically offered by rental car companies:
LIS is typically offered by rental car companies at a daily rate. The cost of LIS varies depending on the type of car you are renting and the rental company you are using.

LIS is an important type of rental car coverage that can provide you with additional liability protection. However, it is important to understand the coverage limitations before purchasing LIS.

In summary, LIS is an optional insurance coverage that can provide you with additional liability protection when renting a car. It is especially beneficial if you are planning to drive the rental car in a state or country with higher minimum liability insurance requirements.

Personal Accident Insurance (PAI)

Personal Accident Insurance (PAI) is an optional insurance coverage that can be purchased when renting a car. It provides coverage for medical expenses and other costs incurred as a result of an accident while driving the rental car.

Covers medical expenses:
PAI covers medical expenses incurred as a result of an accident while driving the rental car, regardless of who is at fault.
May cover other costs:
PAI may also cover other costs, such as lost wages, funeral expenses, and pain and suffering.
Typically offered by rental car companies:
PAI is typically offered by rental car companies at a daily rate. The cost of PAI varies depending on the type of car you are renting and the rental company you are using.
May have a deductible:
PAI may have a deductible, which is the amount you are responsible for paying out of pocket before the insurance coverage kicks in. The amount of the deductible varies depending on the rental car company and the type of coverage you purchase.

PAI is an important type of rental car coverage that can provide you with financial protection in the event of an accident. However, it is important to understand the coverage limitations and the deductible amount before purchasing PAI.

Personal Effects Coverage (PEC)

Personal Effects Coverage (PEC) is an optional insurance coverage that can be purchased when renting a car. It provides coverage for your personal belongings in the event of theft or damage while they are in the rental car.

PEC can be especially beneficial if you are planning to travel with valuable items, such as jewelry, electronics, or luggage. It can also provide coverage for personal belongings that are damaged or lost in an accident.

Here are some key details about PEC:

Covers personal belongings:
PEC covers your personal belongings in the event of theft or damage while they are in the rental car.
May have a deductible:
PEC may have a deductible, which is the amount you are responsible for paying out of pocket before the insurance coverage kicks in. The amount of the deductible varies depending on the rental car company and the type of coverage you purchase.
May have coverage limits:
PEC may have coverage limits, which is the maximum amount the insurance company will pay for covered claims. The coverage limits vary depending on the rental car company and the type of coverage you purchase.
Typically offered by rental car companies:
PEC is typically offered by rental car companies at a daily rate. The cost of PEC varies depending on the type of car you are renting and the rental company you are using.

PEC is an important type of rental car coverage that can provide you with financial protection for your personal belongings. However, it is important to understand the coverage limitations, the deductible amount, and the coverage limits before purchasing PEC.

In summary, PEC is an optional insurance coverage that can provide you with financial protection for your personal belongings in the event of theft or damage while they are in the rental car. It is especially beneficial if you are planning to travel with valuable items.

Emergency Roadside Assistance

Emergency Roadside Assistance is a service that can be included with your rental car coverage. It provides assistance in the event of a breakdown or other emergency while you are driving the rental car.

Emergency Roadside Assistance typically includes services such as:

Towing:
Emergency Roadside Assistance can provide towing services to the nearest repair facility.
Flat tire change:
Emergency Roadside Assistance can provide assistance with changing a flat tire.
Battery jump-start:
Emergency Roadside Assistance can provide assistance with jump-starting a dead battery.
Fuel delivery:
Emergency Roadside Assistance can provide fuel delivery if you run out of gas.
Lockout service:
Emergency Roadside Assistance can provide lockout service if you lock your keys in the car.

Emergency Roadside Assistance can be a valuable service to have, especially if you are planning to drive in a remote area or if you are unfamiliar with the area where you will be driving. It can provide you with peace of mind knowing that you will have assistance if you need it.

Emergency Roadside Assistance is typically offered by rental car companies as an add-on service. The cost of Emergency Roadside Assistance varies depending on the rental car company and the type of coverage you purchase.

In summary, Emergency Roadside Assistance is a valuable service that can provide you with assistance in the event of a breakdown or other emergency while you are driving a rental car. It can provide you with peace of mind knowing that you will have help if you need it.

Towing and Labor Coverage

Towing and Labor Coverage is an optional insurance coverage that can be purchased when renting a car. It provides coverage for the cost of towing and labor in the event of a breakdown or other emergency while you are driving the rental car.

Covers towing and labor costs:
Towing and Labor Coverage covers the cost of towing the rental car to the nearest repair facility and the cost of labor to repair the car.
May have a deductible:
Towing and Labor Coverage may have a deductible, which is the amount you are responsible for paying out of pocket before the insurance coverage kicks in. The amount of the deductible varies depending on the rental car company and the type of coverage you purchase.
May have coverage limits:
Towing and Labor Coverage may have coverage limits, which is the maximum amount the insurance company will pay for covered claims. The coverage limits vary depending on the rental car company and the type of coverage you purchase.
Typically offered by rental car companies:
Towing and Labor Coverage is typically offered by rental car companies at a daily rate. The cost of Towing and Labor Coverage varies depending on the type of car you are renting and the rental company you are using.

Towing and Labor Coverage can be a valuable type of rental car coverage to have, especially if you are planning to drive in a remote area or if you are unfamiliar with the area where you will be driving. It can provide you with peace of mind knowing that you will be covered for the cost of towing and labor in the event of a breakdown.

Rental Car Reimbursement

Rental Car Reimbursement is an optional insurance coverage that can be purchased when renting a car. It provides reimbursement for the cost of renting a car if your own car is damaged or stolen.

Reimburses the cost of renting a car:
Rental Car Reimbursement reimburses the cost of renting a car if your own car is damaged or stolen.
May have a daily limit:
Rental Car Reimbursement may have a daily limit, which is the maximum amount the insurance company will pay for each day that you rent a car. The daily limit varies depending on the rental car company and the type of coverage you purchase.
May have a total limit:
Rental Car Reimbursement may also have a total limit, which is the maximum amount the insurance company will pay for the entire rental period. The total limit varies depending on the rental car company and the type of coverage you purchase.
Typically offered by rental car companies and credit card companies:
Rental Car Reimbursement is typically offered by rental car companies and credit card companies. The cost of Rental Car Reimbursement varies depending on the type of car you are renting, the rental company you are using, and the credit card company you have.

Rental Car Reimbursement can be a valuable type of insurance coverage to have, especially if you rely on your car for transportation. It can provide you with peace of mind knowing that you will be reimbursed for the cost of renting a car if your own car is damaged or stolen.

Diminished Value Coverage

Diminished Value Coverage is an optional insurance coverage that can be purchased when renting a car. It provides coverage for the loss in value of your own car if it is damaged while it is being rented to someone else.

Diminished value is the difference between the value of your car before it was damaged and the value of your car after it has been repaired. This can be a significant amount of money, especially if your car is new or if it has been extensively damaged.

Diminished Value Coverage can help to protect you from this financial loss. It typically covers the difference between the actual cash value of your car before it was damaged and the actual cash value of your car after it has been repaired.

Here are some key details about Diminished Value Coverage:

Covers the loss in value of your car:
Diminished Value Coverage covers the loss in value of your car if it is damaged while it is being rented to someone else.
May have a deductible:
Diminished Value Coverage may have a deductible, which is the amount you are responsible for paying out of pocket before the insurance coverage kicks in. The amount of the deductible varies depending on the rental car company and the type of coverage you purchase.
May have coverage limits:
Diminished Value Coverage may have coverage limits, which is the maximum amount the insurance company will pay for covered claims. The coverage limits vary depending on the rental car company and the type of coverage you purchase.
Typically offered by rental car companies:
Diminished Value Coverage is typically offered by rental car companies at a daily rate. The cost of Diminished Value Coverage varies depending on the type of car you are renting and the rental company you are using.

Diminished Value Coverage can be a valuable type of rental car coverage to have, especially if you are planning to rent your car out to others. It can provide you with peace of mind knowing that you will be protected from financial loss in the event that your car is damaged.

Gap Coverage

Gap Coverage is an optional insurance coverage that can be purchased when renting a car. It provides coverage for the difference between the actual cash value of your car and the amount you owe on your car loan or lease if your car is totaled or stolen.

Gap Coverage can be especially beneficial if you have a new car or if you have a car loan or lease with a high interest rate. This is because the actual cash value of your car can be significantly less than the amount you owe on your loan or lease.

Gap Coverage can help to protect you from this financial loss. It typically covers the difference between the actual cash value of your car and the amount you owe on your loan or lease, up to the limits of the coverage.

Here are some key details about Gap Coverage:

Covers the difference between the actual cash value of your car and the amount you owe on your loan or lease:
Gap Coverage covers the difference between the actual cash value of your car and the amount you owe on your loan or lease if your car is totaled or stolen.
May have a deductible:
Gap Coverage may have a deductible, which is the amount you are responsible for paying out of pocket before the insurance coverage kicks in. The amount of the deductible varies depending on the rental car company and the type of coverage you purchase.
May have coverage limits:
Gap Coverage may have coverage limits, which is the maximum amount the insurance company will pay for covered claims. The coverage limits vary depending on the rental car company and the type of coverage you purchase.
Typically offered by rental car companies:
Gap Coverage is typically offered by rental car companies at a daily rate. The cost of Gap Coverage varies depending on the type of car you are renting and the rental company you are using.

Gap Coverage can be a valuable type of rental car coverage to have, especially if you have a new car or if you have a car loan or lease with a high interest rate. It can provide you with peace of mind knowing that you will be protected from financial loss in the event that your car is totaled or stolen.

FAQ

Here are some frequently asked questions about insurance:

Question 1: What is the purpose of insurance?
Answer: Insurance is a way to protect yourself financially from the risk of loss. It provides coverage for a variety of events, such as accidents, theft, and damage to property.

Question 2: What are the different types of insurance?
Answer: There are many different types of insurance available, including auto insurance, homeowners insurance, renters insurance, health insurance, and life insurance.

Question 3: How do I choose the right insurance policy?
Answer: The best way to choose the right insurance policy is to talk to an insurance agent. They can help you assess your needs and find a policy that provides the coverage you need at a price you can afford.

Question 4: What is a deductible?
Answer: A deductible is the amount of money you have to pay out of pocket before your insurance coverage kicks in. The higher your deductible, the lower your insurance premiums will be.

Question 5: What is a premium?
Answer: A premium is the amount of money you pay to an insurance company for your insurance policy.

Question 6: What is a claim?
Answer: A claim is a request for payment from your insurance company. You file a claim when you have a loss that is covered by your insurance policy.

Question 7: How can I file a claim?
Answer: You can file a claim by contacting your insurance company. They will provide you with the necessary forms and instructions.

Closing Paragraph for FAQ: These are just a few of the most frequently asked questions about insurance. If you have any other questions, be sure to talk to your insurance agent.

Now that you know more about insurance, you can start shopping for the right policy for you. Be sure to compare quotes from multiple insurance companies before you make a decision.

Tips

Here are a few tips for getting the most out of your insurance:

Tip 1: Shop around for the best rate.
Don't just accept the first insurance policy you're offered. Be sure to compare quotes from multiple insurance companies before you make a decision. You can use an online insurance comparison tool to make this process easier.

Tip 2: Choose a higher deductible.
The higher your deductible, the lower your insurance premiums will be. However, be sure to choose a deductible that you can afford to pay if you need to file a claim.

Tip 3: Bundle your policies.
If you have multiple insurance policies, such as auto insurance and homeowners insurance, you can often save money by bundling them together with the same insurance company.

Tip 4: Ask about discounts.
Many insurance companies offer discounts for things like being a safe driver, having a security system in your home, or being a member of certain organizations. Be sure to ask your insurance agent about any discounts that you may be eligible for.

Closing Paragraph for Tips: By following these tips, you can save money on your insurance premiums and get the coverage you need.

Insurance is an important part of financial planning. By understanding your insurance needs and shopping around for the best policy, you can protect yourself and your loved ones from financial loss.

Conclusion

Summary of Main Points:

Insurance is a way to protect yourself financially from the risk of loss.
There are many different types of insurance available, including auto insurance, homeowners insurance, renters insurance, health insurance, and life insurance.
The best way to choose the right insurance policy is to talk to an insurance agent.
You can save money on your insurance premiums by choosing a higher deductible, bundling your policies, and asking about discounts.
Insurance is an important part of financial planning.

Closing Message:

By understanding your insurance needs and shopping around for the best policy, you can protect yourself and your loved ones from financial loss. Don't wait until it's too late to get the insurance coverage you need.