I have rental car coverage and coverage when I rent a car, what's the difference and do I need them?

One of the most asked questions we get in my agency is about rental car and travel. Most insurance companies have rental car coverage and coverage for a rental car, I say most because I am independent and my agency represents many companies, and it's very similar from company to company. (important to note here that this is for the State Insurance of Arkansas, and insurance can be different in other states) Rental car coverage on your policy has a different meaning and can have several different rates, sometimes $25.00/day and can go as high as $75.00/day that the auto insurance will pay for you to rent a car if you are in an accident. Let's not confuse the latter with the renting of car and your insurance exposure for an accident. If you travel, or just want to rent a car, your primary insurance will cover the liability, comprehensive and collision coverage. So, you can tell the rental car place you don't need the extra insurance because your car insurance, in most cases will cover you in an accident in that rental car. In most cases your primary insurance carrier will cover a car that is rented anywhere in North America and Canada. There are some commercial auto policies that will cover your rental car in Europe now, but not your standard run of the mill auto insurance for your personal vehicle. If you were in an accident in another state while you were in a rental car, then (if you have the rental car coverage on your primary auto of let's say the $25.00/ day) then your auto insurance company would pay $25.00 a day for a rental car for the accident you had while you were in your rental car. Confusing right?! This is why it is one of the most asked questions in my agency, and another reason that having an agent that understands your needs as a policy holder and makes sure that you have the right coverage for you. So, enjoy the next trip and rent that convertible and know that you didn't spend extra money on some insurance you didn't need!