You’re standing at the rental car counter, exhausted. All you want is to get your car and zoom off. Then the rental agent asks if you’re going to buy insurance on your rental, you looked at the agent completely clueless, you said to yourself, yes let me buy it, but you’ve also heard it’s a waste of money. So the question remains: Is rental car insurance worth it? The simple answer is “it depends.” Before you jump the gun for a rental car, it’s worth reading over again the policy on your personal auto insurance coverage. In some cases, the policy you have on your personal vehicle extends to a rental car. In other words, buying rental car insurance might be a waste of money. Though the extra cost of the rental company’s coverage in some cases might make sense. Because of that, it’s imperative to know what your personal auto insurance policy covers, and what the rental agency is offering.
Should I Go For Rental Car Insurance Or My Personal Car Insurance Is Enough?
The following are the typical insurance options from rental car agencies and how to know if you are already covered within your personal car insurance policy. You should note that your individual policy coverage applies when you are using a rental car for private, non-business purposes. The rules and regulations might be different for the business use of a rental car. Check with your insurance company or employer for details about coverage when using a rental car for business.
Accidents And Car Theft
At the counter: A loss-damage waiver (LDW), or a collision damage waiver (CDW), gets you off the hook for any destruction or theft to the rental car. It’s really not insurance but rather a waiver which implies the rental car agency won’t come after you. Your personal coverage: If your personal coverage includes collision and comprehensive coverage, it will extend to a rental car. Though, you will still be chargeable for your deductible. In case you don’t have comprehensive and collision on your personal coverage, and don’t have the LDW or CDW, you will be liable to pay for the damage.
Third-party Damage
At the counter: Supplemental liability protection will cater for damage done to third party cars or property. If you don’t have car insurance (for instance, if you don’t have a car), it’s better to buy this. Your personal coverage: Your own liability insurance will cover you when driving rental cars. If you have really little liability coverage on your car policy, it’s better to buy supplemental protection to augment your coverage.
Does My Credit Card Have Rental Car Coverage?
Some credit card companies offer extra insurance if you pay for a car rental using their card. For you to know if you have additional rental car insurance through your credit card issuer, call the toll-free number on the back of your card and have them explain your options to you in detail.
Final Thoughts
Before you decide to rent a car, take a few moments to find out whether you have coverage through existing channels, such as your credit card company, health insurance policy, or homeowners policy. More so, don’t forget to check your personal car insurance policy. Purchasing extra rental auto insurance might not make financial sense if your car insurance policy already provides the coverage you need.
