You might find it tempting to choose the rental car insurance offered by the rental car company, but first of all, it is better to make sure that if you have car rental insurance coverage. Yes, you read it right. It is not crucial that you have to buy car rental insurance from the car rental company.
In most of the cases, if you already have a car, your car insurance policy can include your rental cars.
In addition to this, your credit card benefits can also include rental car insurance.
In case if your credit card benefits or personal car insurance includes rental car insurance coverage, you might not need to buy expensive insurance that is offered by the company, which in turn will help you in saving money.
Do I Need Rental Car Insurance?
Companies that provide rental cars try their best to sell insurance to the customers. These companies offer insurance via a collision damage waiver or loss damage waiver.
This insurance is essential as it provides you coverage in the event when your rental car is damaged, vandalized, or even stolen. In this insurance, the rental car company would not pursue you for losses and repairs.
Nevertheless, most of the time, this type of insurance is unnecessary if you have specific coverages included in regular insurance policies.
Below mentioned are some of the tips to consider before buying expensive car rental insurance offered by the companies.
Check the Coverage of Your Car Insurance Policy
If you have a car, then there are chances that you are already covered under your regular driver’s policy. So, it is better to go through the coverage of your regular car insurance policy.
Check out if it includes any type of collision damage waiver or loss damage waiver for rental cars. If yes, then you do not require rental car insurance.
Check the below-mentioned coverage in the car insurance policy that you already have-
1. Go through your car insurance policy and check if it includes liability coverage. Most of the standard insurance policies include liability coverage as it is needed by the state law.
These liability insurances usually carry over when you are using a rental car. Therefore if you are comfortable with the coverage, your insurance policy includes, you can rely on the supplemental liability.
2. Some people also have collision or comprehensive coverage. This type of coverage provides insurance to your car against non-driving-associated calamities like vandalism, theft, or fire.
If you have this insurance, you can think about declining the rental loss damage waivers offered by the company.
3. Check if your insurance policy includes coverage to personal injury that would pay for the medical expenses for you and the passengers who were present in the car.
Check the Coverage of Your Health Insurance Policy
In case you have a health insurance policy, check all the coverage that are included in it. The insurance policy usually covers the medical costs for you and the passengers present in the rental car.
It is specifically true in the cases if you have medical payments and protection for a personal injury covered in your car insurance.
If this all is not included in your health insurance policy, then the personal accident insurance usually covers medical costs for the injury of you and the passengers hurt in the rental car.
Check the Credit Card Benefits
Some parts of the rental car insurance are one of the fringe benefits offered by credit card companies. The benefit is only covered if you are paying for the rental using your credit card.
Call the company and ask for the benefits included in the credit card.
Car rental insurance varies on the basis of the company and the card provided by them.
In most cases, towing costs and theft are usually covered; however, medical benefits and personal property are usually not covered. Companies usually do not include certain vehicles like full-size vans or expensive luxury cars.
Keep in mind that most credit card benefits only include coverage for secondary rental car insurance. These benefits only cover the costs that are not covered by your personal car insurance.
In order to take advantage of these benefits, you have to decline the coverage of the rental car company.
Different Types of Rental Car Coverages
Here are different types of rental car insurance coverage.
Liability – It is also known as supplemental liability insurance. This insurance provides coverage if you damage any property or vehicle while driving your rental car.
It also includes paying for the medical expenses for you and others who got injured in the car crash for which you are responsible.
Loss/Collision Damage Waiver – This type of rental car insurance provides coverage in case your rental car is stolen or damaged in a car crash. It also covers the loss caused due to loss of use charges.
These charges are included by the rental car companies to compensate for the lost profit caused due to repairing the vehicle.
Personal Effects Coverage – This type of insurance covers if any of your personal items are damaged or stolen from your rental car.
Personal Accident Insurance – This type of insurance covers medical costs for any injury to you or passengers present in the rental car during an accident.
When Should You Buy Rental Car Insurance?
If you are already covered, then it is not suggested to purchase rental car insurance.
Below mentioned are some of the situations in which you might consider to buy rental car insurance.
You Don’t Have Personal Car Insurance – This is one of the situations when you can consider purchasing rental car insurance. In this case, you will also need to buy supplemental liability.
You are Driving a Rental Car in a Foreign Country – In case if you are traveling abroad, you can opt for buying rental car insurance.
However, if your credit card offers rental coverage in foreign countries, then cross-check with the credit card company that the country you are traveling to is not excluded in the coverage.
You are Using Rental Car for Business – If you are using a rental car for any business purpose, then your personal car insurance might not provide coverage for the rental car.