Do I Need to Buy the Car Rental Company's Insurance?
When you rent an automobile from a rental agency, the customer service agent will offer you the option to purchase a rental car insurance plan. For a fee, you can be sure the rental car has a coverage policy in place should you get into an accident. However, rental insurance policies raise the overall cost of the rental and you may be able to get coverage through other outlets, such as your personal car insurance or credit card.
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Types of Car Rental Insurance
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Car rental insurance policies known as collision damage waivers or loss damage waivers cover the cost of repairs to a rental vehicle if you are involved in a car accident or if someone vandalizes or steals the car. Renters can purchase this optional policy for a daily fee. According to TravelSense, the fee ranges from $8 to $12 a day as of October 2010.
Additional Car Rental Insurance
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Renters can also purchase separate policies beyond collision damage waivers or loss damage waivers to protect their property or themselves. Personal accident insurance pays for medical bills and provides accidental death coverage for the renter and his passengers. Personal effects coverage reimburses the renter if someone steals his personal belongings from the rental car. Additional liability insurance protects the renter if another driver seeks recourse for additional medical bills, car damages or pain and suffering after an accident.
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Rental Cars and Your Auto Insurance
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Personal auto insurance typically covers the driver while she is using a rental car. Liability insurance will pay for the cost of repairs and medical bills for the other drivers in the accident. Collision insurance will pay for the cost of repairs due to theft, vandalism or weather. Comprehensive insurance will pay for the cost of repairing the rental vehicle. However, the driver will have to pay her insurance deductible before getting the repairs.
Other Ways to Get Rental Car Coverage
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Many credit card providers offer free rental car insurance if the driver pays for the rental car on his credit card. However, the policy offered by the credit card company may not cover all of the damages associated with an accident, such as the cost of repairing other vehicles involved. Renters should review a detailed report of the credit card company's insurance policy before declining other forms of insurance.
When to Buy Car Rental Insurance
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Rental insurance can be beneficial if you only carry liability insurance on your personal vehicle and cannot afford to repair or replace the rental car should you have an accident or be a victim of theft, or if you feel your primary insurance will not cover the full cost of repairs or medical expenses.
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References
- Photo Credit wrecked car image by hazel proudlove from Fotolia.com
