Anyone who plans to rent a car or has rented a car has to consider methods on how to insure the car. Rental car professionals will advise that insurance is required and will offer options to obtain insurance for the car. Many consumers may be wondering: “should you buy car insurance with your car rental?” Let’s explore the pros and cons of purchasing car insurance for your rental.
What is the difference between car insurance for your personally owned vehicle and car insurance for a rental?
The biggest difference is that car insurance rental companies usually have no deductible or an extremely affordable deductible. Their insurance typically provides coverage for any time of the vehicular accident. Personal auto insurance policies can place limits on the amount of damage covered when in a rental car.
There are a plethora of reasons that you may want to purchase car insurance through the rental car agency.
No personal car insurance
If you have no car insurance of your own, this is the best option for you. You can avoid using outside sources to seek insurance and it’s just more convenient.
Prefer not to use a credit card
Debit cards typically will not include protection for rental cars. You would have to check with your financial institution to see if this perk is provided to you. Also, it avoids using available funds on your credit card. Keep in mind that credit cards usually offer coverage for 15 days. If you will have the rental car for more than two weeks, purchasing coverage from the rental car agency is a smarter choice.
International Travel
If you are traveling abroad, your insurance in your country may not extend to other countries. In these situations, it is easier to purchase insurance with a car rental agency.
High Deductibles
Your insurance may have a higher deductible in comparison to a policy offered by the rental car agency. Perform some fact-checking to make an educated decision before choosing the policy with the lowest deductible.
If you choose to decline the insurance that the rental car agency offers, verify with your insurance agency that you have enough coverage to remain financially responsible. Yes, it could save you money in upfront cost, but there is no guarantee that its coverage will surpass the coverage offered by the rental car company.
Most Common Types of Rental Car Insurance:
Collision Waiver Damage
Collision waiver damage is useful if you cause damage to your rental car. This includes broken windshields, tires or other parts of your car, and acts of nature.
Rental Car Liability Insurance
This type of insurance will cover bodily injury and damage to property if you have caused the collision.
Personal Effects Coverage
If anything is stolen from your rental, personal effects coverage can help reimburse you for stolen property. If there are expensive cameras, clothing, etc., consult with the insurance agency to see how much is covered.
Personal Accident Insurance
This coverage is geared towards the medical cost and will provide financial coverage for medical bills to you and others who are in the vehicle.
Ultimately there is no risk involved from purchasing additional insurance if you have private car insurance. You must consider the factors that matter most to you before deciding to purchase rental car insurance. If the benefits of purchasing rental car insurance outweigh the consequences, then your decision is easy.
Some people like to use rideshare services rather than renting a car. For this type of service, you wouldn’t have to purchase insurance through car rentals. However, make sure you do contact a rideshare accident attorney in the event you are involved in an accident. Unfortunately, those situations are not what anyone wants but you have to be certain you know your rights and the rights of these rideshare companies.
Consider all your options before you purchase insurance for your car rental if you do decide to rent a car over a rideshare company.