Long Term Car Rental Insurance Question

I'm going to need a rental car for 3 months. I have no problem with the price of the car (I'm budgeting about $700 a month), but the cost for purchasing car rental insurance is crazy. I don't own a car of my own, so I can't use my own insurance for liability. Is there any way I can be covered for the rental car, without having to buy the insurance offered by the car rental company?

In most states, basic public liability and property damage insurance will be included in your rate, up to the minimum limits required by law.(Check with the rental company directly) When the try and sell you Additional or Supplemental liability, this is merely upping the coverage beyond the minimum state requirements.

What you will want to consider is coverage for the rental vehcile itself, which is not included in the insurance mentioned above.

The car rental companies will offer you a LDW or CDW coverage to cover loss or damage to the vehicle. (it is not insurance, but a waiver) The price of this coverage averages over $20 a day which will throw your $700 a month budget out the window on a three month rental.

While it is not a mandatory coverage, you will want to be covered for the rental car, in case something happens.

Many credit cards offer LDW or CDW coverage to cardholders. I would suggest that you check to see if the credit card that you're going to use offers this protection... this will save you a lot of money. Make sure, though, to carefully read the terms and conditions of any possible coverage; especially with regards to the length of your rental, the state/city of the rental, size of the car, etc.
Also, keep in mind that most credit card coverage is reimbursement-type coverage... meaning you would have to pay upfront for any damages to the rental car, plus administrative fees and loss of use fees, and then apply through your credit card for reimbursement.

Hope this helps!!

References and other related topics:


Car Rental Insurance Overview

Personal Auto Insurance Coverage

CDW and LDW Coverages

Credit Card Coverages

Personal Protection Offers

Liability Insurance