When you rent a car, there is a good chance that the rental car agency will try to get you to sign up for rental car insurance. The thing is most auto insurance policies and credit cards already cover rental cars. So, is there any benefit to getting rental car insurance? Read on to find out.
Check Your Auto Insurance Policy
If you already have an auto insurance policy, you should check the terms and conditions of the policy to know whether your policy includes coverage for rental cars. Even if it does, make sure to check the coverage limits and the applicable deductible.
Review the Coverage of The Rental Car Insurance Policy Offered by The Agency
You may also want to check the policy offered by the rental car company to know what’s covered and what’s not. Rental car companies usually sell Loss Damage Waivers, Collision Damage Waivers, and supplemental liability insurance. If your auto insurance policy does not offer this coverage, it may be worth buying them separately from the car rental agency.
Your Credit Card May Already Offer Rental Car Insurance
You may not know this, but a number of credit cards offer rental car insurance, provided you pay the rental car agency with your credit card. This insurance coverage is usually offered free-of-cost. The coverage may, however, vary, so ensure that you are aware of what exactly the insurance provided by your credit card covers.
It Can Pay to Have Rental Car Insurance
Purchasing a rental car insurance policy can make sense if the deductible applicable to your primary auto insurance policy is too high. Keep in mind that raising a claim will also probably increase your premium. Additionally, if the car you are renting has a higher market value than your own car, it’s best to get additional coverage for the rental car. It goes without saying that you should certainly buy rental car insurance if you don’t have an auto insurance policy and your credit card doesn’t cover rental cars either.
Even if you do choose to buy rental car insurance, ensure that you check the limitations of the coverage and go through the fine print in detail.