Auto Insurance in Michigan: 3 Common Myths about Rental Car Coverage


There are generally two types of travelers. One group can be called “old-fashioned”—these travelers rely on traditional brick-and-mortar establishments to book tickets at airline premises or have car rentals arranged and everything else until arrival at the destination. Another group is pretty much hands-on, and will arrange for everything—booking online for the best travel deals on the Internet and checking out details to arrange a car rental, for example.


Either traveler type thinking of driving a car rental should consider insurance coverage. Apart from the car insurance, one can get an add-on coverage for additional protection. There are misconceptions about rental car coverage. For instances, your rental car policy linked to your auto insurance in Michigan. Here are the common myths about supplementary insurance and the truth behind them.

Myth 1: You always need to get rental car coverage.

The Truth: It always depends.

Rental car coverage is optional. Is it advisable to pass this up? Not every auto insurance includes rental car protection. You always need to check with your insurer or agent first.

The rental company or car sharing programs are required by law to insure the car. They may have different terms too. They may offer the minimum or they may offer comparatively better benefits. So you must decide if you need additional protection.

Myth 2: All you need is liability insurance for the rental car.

The Truth: You ought to get other add-ons.

A Loss Damage Waiver (LDW) or Collision Damage Waiver (CDW) can cover you from a lost, stolen, or damaged car. You need Personal Accident Insurance as coverage for car crash injuries and a Personal Effects Coverage if you want to protect extra-valuable items that you carry with you.

Myth 3: If another person will drive the rental car, he/she needs to get a separate policy altogether.

The Truth: It depends

Usually, there will be no need for separate insurance products. Several insurers will simply require a small fee for every additional driver in the supplementary policy.

To get exactly what you need, shop for a comprehensive auto insurance, and then you can decide whether you need supplementary rental car insurance in Michigan when you travel. Agencies like Allied Insurance Managers, Inc. can offer expert help in exploring great options for your needs and budget. Whether your aim is to cover the bases and have yourself completely protected, or if you want to get only the essentials to save a few dollars, an experienced agent can help you choose the most suitable insurance coverage to match your needs.


Rental Car Insurance, Insurance Information Institute

Car Rental Insurance Tips, USA Today

Car Rental Insurance Tip Sheet, Consumer Affairs

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Allied Insurance Managers's Bio

Headquartered in Rochester Hills, Mich., Allied Insurance Managers is one of the largest, privately-owned, independent insurance agencies in Michigan.