Many people don’t realise this, but if you’re renting a car, you may not need to purchase the rental company’s insurance. In fact, you may already be covered. Here’s what you need to know about rental car insurance so that you can save yourself some money the next time you’re at the rental counter.
Table of Contents
- What is Car Rental Insurance?
- What is the Cost of Car Rental Insurance?
- What are the Pros of Adding Insurance to Your Car Rental?
- What are the Reasons for Skipping Car Rental Insurance?
- How to Come to A Decision
- Besides Insurance, What Other Extras Should You Figure into Your Car Rental Budget?
- Conclusion
What is Car Rental Insurance?
Car rental insurance is basically just liability and collision protection for the vehicle you’re renting. Most standard auto insurance policies will cover you for both of these things, even if you’re in a rental car. That means that, unless you have a really old or expensive car, it’s probably not worth it to pay for the rental company’s insurance.
If you don’t have auto insurance, or if your policy has lapsed, you’ll need to purchase the rental company’s insurance. If you’re renting a luxury or exotic car, your personal auto insurance policy might have limits on damages. It would make sense to get the rental company’s insurance.
What is the Cost of Car Rental Insurance?
The cost of rental car insurance can vary quite a bit depending on the company and the length of the rental period. However, it’s generally pretty affordable. For example, Hertz charges $11 per day for liability coverage and $17 per day for collision and comprehensive coverage on most of their rentals. So, if you’re renting a car for a week, you could end up paying as much as $154 just for the insurance!
What are the Pros of Adding Insurance to Your Car Rental?
When you’re renting a car, you may be given the option to add insurance. While this can add to the cost of your rental, it can also provide valuable protection in the event of an accident. If you damage the rental car, the insurance will cover the repairs.
This can be especially helpful if you have an accident in a location where it would be difficult or expensive to get the car repaired. In addition, if you’re liable for damage to another vehicle or property, the insurance would also cover those costs.
Adding insurance to your car rental can give you peace of mind on the road and help you avoid costly repairs in the event of an accident.
What are the Reasons for Skipping Car Rental Insurance?
When you’re being offered insurance at the counter of the car rental company, it can be tempting to say yes – after all, it’s just a few extra dollars per day, and it gives you peace of mind in case something happens to the car. However, there are good reasons to skip rental car insurance.
For one thing, your personal auto insurance policy may already cover damage to a rental car. In addition, your credit card may provide coverage for rental cars. So before you say yes to rental car insurance, be sure to check with your auto insurer and credit card company to see what coverage you already have. You may find that there’s no need to pay for extra insurance when you’re renting a car.
How to Come to A Decision
As you’re considering purchasing car rental insurance, there are a few things you should keep in mind. First, talk to the rental company to understand their policy. What kinds of accidents or damage are covered? What is excess/deductible? Are there any restrictions on who can drive the car?
Once you clearly understand the rental company’s policy, you can talk to your insurance company to see if you are already insured when driving a rented vehicle. If you are, then you may not need to purchase additional insurance. However, purchasing car rental insurance may be a good option if you’re not insured or if the coverage is limited.
Besides Insurance, What Other Extras Should You Figure into Your Car Rental Budget?
When you’re renting a car, the additional extras like insurance and special car features can add up quickly. When deciding what you want to add, you need to factor in all the costs to stay within your budget.
In addition to the potential cost of insurance and extra car features, you’ll also need to pay for gas and any tolls you incur. If you’re planning to park in a garage or lot, those fees will also need to be added to your total. And remember incidentals like maps and snacks for the road. By considering all these factors, you can ensure that your rental car experience is both enjoyable and affordable.
Conclusion
As you can see, there’s a lot to consider when it comes to whether or not you need to purchase rental car insurance. Consider the pros and cons and decide what’s best for you. Consider your options after checking with the car rental company and your insurance company.
Then, be sure to factor in all the other costs of renting a car so you can stay within your budget. With a little planning, you can have a great experience – without breaking the bank.
Ultimately, it comes down to your personal circumstances and what kind of coverage you already have. If you’re not sure, err on the side of caution and get insurance. It’s always better to be safe than sorry!
Also read: 5 Advantages of Buying a Rental Car
