Do I Need Extra Insurance When Renting a Car?
Accidents happen, and they're more likely to happen if you're driving in unfamiliar cities or on the wrong side of the road. Purchasing extra insurance when renting a car is a matter of practicality and personal preference. Make sure you have adequate insurance coverage (or be prepared to pay damages), then decide if you need the extra peace of mind or whether you feel comfortable saying no.
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Personal Insurance
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Whether you need to purchase extra insurance often depends on your personal car insurance policy. "USA Today" notes that some companies cover car rental when you're on vacation, but not for business travel. According to Allstate, rental can insurance is "rarely automatically included" in a car insurance policy. If it is included, companies may cover smaller amounts for a rental car than they would your own car. Find out what type of coverage you have before you rent, then buy insurance if you are uninsured or underinsured.
Credit Card
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Even if your insurance doesn't provide adequate coverage, you may be able to get insurance through your credit card company. Credit cards typically include some degree of collision and theft that apply to rental cars. Call your company when planning your trip to figure out what type of rental car coverage you have, then evaluate whether you need extra insurance.
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Cost
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The main cost of purchasing extra insurance is financial. You pay for a service that you may not use. If you can have rental car coverage through a credit card or your personal car insurance, buying extra insurance is not necessary.
Advantages
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Should your rental car get damaged, you won't need to pay anything aside from a deductible. If you get in an accident and you have extra insurance, your rates with your insurance company will not go up (since you were under rental insurance at the time). If you can afford to pay the extra money, extra insurance may be a good idea simply for the comfort factor. If you are underinsured or uninsured, you should purchase it.
Types
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If you're getting extra insurance you have choices. "USA Today" notes that car rental company Avis offers five insurance options, including two personal accident plants and supplemental liability insurance. Pick and choose from the extra insurance offerings to create a safety net between your own insurance and the rental agency's.
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References
- Photo Credit yellow car, a honda japanese sport car model image by alma_sacra from Fotolia.com
