Anyone who has ever rented a car knows that at the end of the transaction comes the time to decide whether you want to add rental car insurance or not. While doing so might feel like a no-brainer if you’re in a foreign country or are new to driving, many decide against it and are itching to get out on the road. Some people get rental car insurance every time, some assume their credit card company has sufficient coverage, and others choose to forego any coverage whatsoever.
The sticker shock of rental car insurance is often the main deterrent for renters, with per day charges being at or above the price of renting the car for the day. Before renting your next car, it’s worth learning whether you should opt in for this additional coverage or not.
What does rental car insurance cover?
There are a few different types of insurance offered at the rental counter. Here is a simple breakdown of the most common types of coverage:
- Loss Damage Waiver: this option ensures the company won’t charge you if the car you are renting is stolen or damaged.
- Collision Damage Waiver: this covers you if there is any damage to the rental car.
- Liability Coverage: this covers any damage or injury you cause to other people or property.
- Personal Accident Insurance: this covers your own medical expenses or those of your passengers in the event there are injuries that occur while operating the rental car. It also provides accidental death coverage.
- Personal Effects Coverage: this covers theft of any belongings from the rental vehicle.
When should you choose to opt for rental car insurance
While you likely spent some time researching the most important things to include in your personal auto insurance policy, it’s important to know when these coverages extend to a rental car or not. It’s true that your own auto policy may already cover your rental and some credit cards offer rental insurance, but there are often gaps in that coverage. Because of this and other circumstances, there are a few instances where you may want to consider purchasing rental car insurance.
The first would be if your existing coverage and credit card lacks the coverage you need. Prior to traveling you should review both your current auto insurance policy and your credit card coverage to understand your limits. This should give you a clear understanding of whether you’re covered appropriately or not.
Another instance where you might need rental car insurance is with international travel. Rental car policies vary widely by country and if you’re renting a car in a foreign country your coverage may not extend to adequately take care of you there. Being in a foreign land and not having enough coverage may just be enough to make you want to purchase coverage. Finally, consider the area you’re driving in. If you are driving in a busy city and typically live in a quiet suburb or if you are planning on having an extended rental, additional coverage may give you the peace of mind you need.
Is it worth the investment?
It’s up to you to determine whether the pros outweigh the cons when you get to the rental car counter and make the decision on whether or not the investment is worth it to you. If you feel you have reliable coverage through a current policy or credit card, you may feel confident when you decline. If you aren’t sure, you may want to do your research or simply opt for the extra fee, so you have a stress-free trip. Whatever you decide, making a choice based on fact and a clear understanding of your coverage is the best route.
Understanding the factors that influence car insurance costs can help you make informed decisions. Reviewing your policy with a trusted attorney like North Shore Injury Lawyer Mark T. Freeley can clarify your options. With over 30 years of experience fighting insurance companies, Mark is ready to assist you. If you have questions about your car insurance policy, call him at 631-495-9435 for a free consultation.