When to Buy Rental Car Insurance

When you need to rent a car, deciding on whether or not to purchase rental car insurance can be a difficult choice to make and one that isn't so cut and dried. Factors like personal auto insurance coverage and credit card car rental insurance should be investigated to discover where gaps may exist between these two avenues. Some drivers decline rental insurance by default, relying on their personal auto collision coverage to cover any damages. Car rental insurance can significantly add to the bottom line of your rental bill, however it can be a small price to pay should you have an accident or suffer loss due to vandalism or a break in and your current coverage is insufficient. Auto insurance policies can cover some of the expenses in the event of an accident but may not cover costs like loss of use of the car by the rental company. For those who don't have auto insurance, the decision weighs more heavily. In some states, the law requires that drivers have insurance coverage whether or not the vehicle is a rental. In such cases, rental companies require proof of insurance or are required to extend the minimum coverage (as the law states) to renters automatically, sometimes at no charge.

Taking a closer look at your existing auto insurance policy or making a quick phone call to your insurance agent can help to determine whether or not purchasing car rental insurance is necessary. If there aren't any gaps in your coverage, buying rental insurance is a waste of resources. If there are gaps in coverage, purchasing car rental insurance may fulfill your needs. If you have homeowners or renters insurance, you may have coverage for the loss of personal property during your rental period should you experience theft or vandalism. Also worth investigating is the credit card you use to purchase your rental. Calling your credit card company will help sort out what's covered and what is not, thus enabling you to make a smart decision before getting to the rental car desk. Once you are aware of potential gaps in coverage, you can take into consideration other factors that may increase your probability of an accident, for example if you're going to be driving in an area you're not familiar with, if you're worried about theft or vandalism, and the length of time you will be renting the vehicle. If you're renting a car locally for a day or two, you may feel more confident in the odds of not getting in a car accident than you would be driving in unfamiliar territory. Although optional, licensed drivers who don't own a car and thus don't have an auto insurance policy, or have coverage through a credit card would most likely benefit from purchasing insurance products from the rental company like LDW (loss damage waiver) which protects against personal property, and/or CDW (collision damage waiver) which covers the expenses to the vehicle in the event of an accident.

Purchasing rental car insurance coverage is largely a personal choice, however informing yourself of the options is the best way to know what's necessary for you.