How to Know When to Pay For Rental Car Insurance

When you rent a car or truck you will be given the option to pay for rental car insurance. Do you need rental insurance? You may need the insurance to protect yourself or it may be coverage that you already have. This article will help you to understand types of car rental insurance so you can decide if you need to add coverage.

Difficulty: Moderately Easy

Instructions

Things You'll Need:

• Valid Drivers License
• Credit Card

1. Contact your personal auto insurance agent to determine if you are already covered for rental cars.
   
   Many car insurance policies already cover you when you rent a car. Dig into the details of your existing policy if you have coverage.
   
   Do you plan to travel outside of the U.S.? Make sure your existing policy covers the location which you will be renting the car and driving the rental car during your trip.
   
   Check the liability coverage of your existing insurance policy. Make sure your policy covers at least the minimum required amount of liability coverage where you will be driving the rental. Also, make sure the full value of the vehicle you plan to rent in case of theft, collision, ore natural disaster (flood, hail, hurricane, etc.). Verify that the deductible is the same as your personal car in case of claim against your insurance for a rental car.

2. 

   Major credit cards may offer you some car rental protection if you pay for the rental with the card. Credit card coverage usually only covers collision insurance and is considered secondary insurance to your personal auto insurance and any other coverage you purchase. Terms of the coverage can be very restrictive so make sure you understand the coverage before making assumptions. Call the 1-800 phone number on the back of your card to request the terms of their coverage and to ask questions.

3. Consider purchasing a loss damage waiver (collision damage waiver) agreement from the rental car company if any of the following conditions apply to your rental:
   
   You are renting a car while traveling for work. Many personal auto insurance policies will not cover car rentals for business purposes. Also you should not risk raising your personal auto insurance premiums if something were to occur with the rental car for a work related trip.
   
   If you have no car insurance at all, you will need to protect yourself.
   
   The car rental location is outside your personal auto insurance coverage
   
   If your personal car insurance coverage does not cover the full cost of the vehicle you are renting
   
   Make sure you read all the restrictions and exclusions of the loss damage waiver coverage to make sure you are getting exactly what you think.

4. Evaluate whether you need supplemental liability insurance.
   
   Supplemental liability insurance protects you against personal injury and personal property claims made against you while driving the rental car. If your personal auto insurance policy covers rental cars you should also have liability insurance. Also, rental car companies usually provide a minimal level of liability insurance with the standard car rental agreement as required by most state law. If you have no insurance or are traveling for business purposes you may want to consider protecting yourself with supplemental liability insurance.

5. 

   Personal accident insurance is not needed by most but evaluate whether it is needed by you.
   
   Passengers and drivers with this type of insurance are protected from medical and ambulance bills. If you do not have medical insurance this protection would help you in case of an accident. Those with medical insurance would only add duplicate coverage by purchasing this type of insurance. Also, consider the passengers who will be traveling with you. Do they have medical insurance?
   
   Paying for rental car insurance can sometimes be a good idea. Other times you will only be wasting your money since you already have the needed coverage. Treat each rental differently and evaluate your situation to know when you should pay for rental car insurance.

[sonni57]

on 4/23/2009 Good article on car rental insurance we all need to know this.