The next time you rent a car, you will be faced with a question that is asked of everyone who rents cars have to answer: do you want rental car insurance? Even if you decline their coverage, they will oftentimes try to convince you to buy their insurance. You may see this as a waste of money, but it may not necessarily be. However, if you waive the insurance, you will be responsible for damages to the rental car.
If you were involved in an accident with the rental car, you will have to make sure it gets repaired or replaced. If you opt out of the rental company insurance, you may or may not be covered by your auto insurance policy. If you maintain full coverage on your own vehicle, the chances are pretty good that your insurance company will also cover a rental vehicle. However, they may have different coverages and deductibles, so you will have to contact your insurance company or check their terms and conditions.
When choosing to use your own insurance, be aware that there are pros and cons to using them. The advantages are that you will be able to deal with your own agents which may be less of a hassle for you. On the downside, using your own company means that your premium will probably increase. Also, in most cases the rental car company will charge your credit card for repairs and you will be accountable for coordinating reimbursement from your auto insurance company.
If you choose to use rental car insurance, you will save yourself a lot of dilemmas of using your own. Firstly, your personal insurance rate will not go up if you are involved in an accident and you were found to be at fault. Additionally, with a rental insurance policy, you will not have to pay a deductible.
But rental car insurance is generally very expensive. Unlike your insurance company that calculates rates based on statistics about drivers like you, the rental company charges a flat rate for everyone based on the overall likelihood that their car will be involved in an accident. It is usually calculated on a daily basis, so having the car for an extended period of time (even a week) can be extremely expensive. You will have to weigh the cost of insurance and not having a deductible with the money you might have to pay for a deductible.
Before you get rental insurance, you will have to determine if it is what you want. If you are driving somewhere that is unfamiliar to you, there is a higher probability that you will be involved in an accident, particularly if there is higher traffic, bad weather, or unfamiliar laws. If you are renting in a foreign country, many personal insurance companies will not cover you while you are traveling abroad.
On a final not, you may have one other option. Some credit card companies offer limited protection on rental cars that covers loss or theft. They do not provide coverage for property damage or injuries, only the car. Make sure you read the terms and conditions provided by your creditor or contact them if you have any questions.
If you are going to rent a car, it is certain that they will try to persuade you to get rental car insurance. Having all of the information about the type of coverages that are available to you from them, your insurance, or the credit card company will ensure that you can choose the best coverage for you.
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