Do I Need Rental Car Insurance on Vacation?
If you’re planning a trip to Wisconsin, renting a car can make getting around much easier, whether you’re visiting Milwaukee, Madison, the Dells, or exploring the state’s many parks and trails.
But when you pick up your rental, you’ll likely be asked if you want to purchase rental car insurance—and you might wonder if you really need it. Understanding your coverage options before signing on the dotted line can help you avoid unnecessary costs, confusion, and stress in case of an accident.
Here’s what you need to know about rental car insurance: the different types, factors to consider, and what each option covers.
Does Your Existing Car Insurance Cover a Rental?
Before purchasing rental car insurance, check whether your existing auto insurance policy covers rental cars. Many providers extend their coverage to rental vehicles, potentially saving you money.
If it does, review the coverage types and limits. Some plans offer the same level of protection for both personal and rental vehicles, while others provide only basic coverage. Be aware of any restrictions; for example, some policies won’t cover rentals used for business travel.
If you purchase rental car insurance, get a liability notice from the rental company. Wisconsin law requires all rental companies to provide a written notice detailing your rights, responsibilities, and potential liability. Review this document carefully before signing anything.
Reasons to Buy Rental Car Insurance
There are many scenarios where it might be worth purchasing rental car insurance. If you’re unsure whether you should buy coverage, check if one of the following situations applies to you:
- You Don’t Have Personal Car Insurance: If you don’t own a car, you probably don’t have a personal auto insurance policy. In that case, purchasing rental car insurance is essential. Let the rental company know you’re uninsured and ask about available coverage options and add-ons to make sure you’re fully protected.
- Your Policy Doesn’t Include Collision or Comprehensive Coverage: If your current policy only covers liability, you might have to pay out of pocket for damages to the rental car.
- You’re an International Traveler: If you’re visiting Wisconsin from another country, your current insurance policy likely won’t cover rental cars in the U.S.
- You’re Renting a High-Value Vehicle: If you’re renting a specialty vehicle, like a luxury car or sports car, your personal auto insurance may not provide full coverage. To ensure adequate protection, consider purchasing rental car insurance from the rental company.
Types of Rental Car Insurance and Their Benefits
You’ll have several coverage options when purchasing rental car insurance in Wisconsin. Understanding what each includes can help you choose the best protection for your needs.
| Insurance Type | What It Covers | Consider Buying It If |
| Collision Damage Waiver (CDW) | Damage to the rental vehicle, including accidents, theft, and vandalism (varies depending on the policy, with some requiring a deductible). | Your personal auto insurance doesn’t have comprehensive or collision coverage. |
| Liability Insurance | Damage you cause to others, including injuries and property damage. | You don’t have personal auto insurance.Your policy doesn’t cover liability or rentals or has low liability limits. |
| Personal Accident Insurance (PAI) | Medical expenses for you and your passengers in case of an accident. | You aren’t covered by MedPay or a health insurance policy. |
| Personal Effects Coverage (PEC) | Theft of personal belongings from the rental car, overlapping a home or renter’s policy. | You intend to carry valuables in your rental vehicle.You want extra protection beyond your existing home or renters’ insurance. |
While having the right insurance coverage offers peace of mind, accidents can still happen. Knowing what steps to take next is important if you’re involved in a crash while driving a rental car in Wisconsin.
What Happens If You Get Into a Car Accident on Vacation?
In Wisconsin, rental car accidents are typically handled under the state’s at-fault insurance laws, meaning claims are usually filed within the state. However, the process may vary depending on whether coverage comes from your personal auto insurance or the rental company.
Follow these steps to ensure a smooth claims process.
- Call 911. If you or anyone else is hurt, call 911 and request medical help.
- Report the accident. Wisconsin law requires reporting accidents that result in injuries, over $1,000 in private property damage, or over $200 in government property damage.
- Exchange details. Swap your contact information, driver’s license, vehicle registration, and insurance details with all other parties involved in the crash.
- Gather evidence at the accident scene. Take pictures of the damage to your rental car, the road conditions, and your own injuries. If you can, request statements from accident witnesses.
- Contact your rental car company. Notify the rental car company about the accident and follow their instructions. If you have rental car insurance, they can guide you through the claims process in Wisconsin.
After reporting the accident, consider consulting an Appleton car accident lawyer to understand your legal options. A local attorney knows the state’s laws and regulations and can negotiate with insurance companies on your behalf to help you secure the compensation you deserve, even if you’re from out of state.
Contact Brian Hodgkiss Injury Lawyers for Help After a Car Accident
A car accident can happen anytime, including in a rental car or traveling out of state. If you need legal representation from an experienced local car accident attorney, you can count on Brian Hodgkiss Injury Lawyers.
Contact our law firm for a free, no-obligation consultation to learn how we can help you manage your car accident claim.