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Should You Get Rental Car Insurance if Your Have Car Insurance?

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Reserving a rental car comes with many last minute choices and upgrades. You will be presented options to upgrade to a premium car, get a car seat, and overpay for a navigation system. Next comes the rental car insurance that will cover collisions. Many people skip this as it usually increases the daily rental amount up to $15 per day. Although your insurance company may extend coverage when you rent a car, there may be limitations.

 

Across the US, there is a requirement to have car insurance. Every state has their own liability minimum. Without collision coverage, you run the risk of accidents not being covered. The collision coverage offered by your own car insurance may extend to rental cars. Rental car insurance is not required by law, but all car rental companies do offer insurance plans for their customers. Even if your own car insurance already covers collision for rental cars, there are other potential uses for car rental insurance that may not be covered. Here are a few benefits of having additional car rental insurance.

 

• Many auto insurance companies do not cover loss of use. This means that if your car is in the shop for repairs and you rent another car, your auto insurance may not pay for the loss of a rental car in an accident.

 

• If you are planning to take your rental car out of the country, check your auto insurance policy to see if it will become void once you cross the border. Usually rental car insurance will offer a policy with limits that extend beyond the border so you can remain protected in neighboring countries like Canada and Mexico.

 

• Will you be traveling with any expensive personal items such as a laptop, digital camera, or jewelry? If any of your personal items exceed your personal insurance’s deductible, then you should consider purchasing the car rental insurance. The chances of having your items stolen or lost are quite high when you are travelling.  If you buy the rental car insurance, then you will be reimbursed for your item quickly.

 

Rental car insurance may be a requirement if you have had numerous auto accidents. However, if your record is clean, then you will be given the option to purchase the insurance or forgo it. Research the advantages of buying car rental insurance, and decide for yourself if you should pay the extra money for the extra protection.

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