Is it Necessary to Purchase Insurance from a Rental Car Company?
We’re all familiar with “what if” scenarios. They can spiral you into a whirlwind of worry or cause you to take extra precaution. Even though the scenario might be scarce in action, could it be worth the trouble or financial strain to cover them? In this blog we will look at the topic of rental car insurance and if it’s worth purchasing.
How Rental Car Insurance Works
This insurance is there to cover the car and the driver. As a standard, most rental car insurance extends over your personal car insurance policy, which usually has some rental car insurance coverage. You shouldn’t need extra coverage then, right? Well, it depends on how extensive your personal insurance is. You could also have rental car coverage from your home insurance policy or even your credit card! It’s best to have a thorough look at your policy before you go purchasing duplicate coverage.
Where to Look for Rental Car Insurance Coverage
- Your Liability Insurance – This insurance policy can be mistaken for having next to no benefits, but that is not always so. Usually it will carry no-fault insurance that protects you against any injury or damage you cause while driving a rental. The protection though depends upon the limits within your policy.
- Comprehensive or collision coverage- These can be found on your personal car insurance if you carry full coverage. They should cover and protect damage from accidents, fire, theft, weather-related issues and other things out of the driver’s control while driving a rental car.
- Personal Injury Protection – This can be found on your personal car insurance if you carry full coverage. It can cover medical bills that occurred during an accident involving a rental car.
- Your Health Insurance – Depending on your plan, your personal health insurance could have coverage for medical bills that occurred during an accident involving a rental car.
- Your Homeowners Insurance – Sometimes homeowner’s policies carry Personal Property Insurance. This covers personal items that have been stolen from a rental car.
- Your Credit Cards – You might be surprised to learn that some credit card companies provide rental car insurance as a benefit. This is usually more common for cards that offer travel rewards programs. To take advantage of this you will probably have to pay for the rental with the specific credit card. Here’s a list of credit cards for rental car coverage.
Reasons to Purchase Rental Car Insurance
There are situations that warrant the purchase of rental car insurance. While you might have general coverage, loopholes always exist for that one unexpected “what if” scenario. Here are some instances:
- To Avoid a Claim – No one likes it when their personal car insurance rates go up. While your personal policy covers rental accidents, the claim will be dinging your policy. You can avoid this by buying the rental company’s policy.
- When Your Liability Coverage Isn’t Enough – Liability only goes so far. The policy that the rental company provides could fill in the gaps!
- When Your Deductible is Too High – The policy that the rental company provides could have you paying nothing out of pocket or a much lower rate than your personal deductible would be.
Bottom Line
In the insurance industry, we are all too familiar with the “what if” thought processes transforming into real-life situations. Seeing these situations eased by having the insurance coverage necessary makes us proud to work in this business.
Still confused about what coverage you have before renting out a car? Give Greg Fay’s office a call! Our team would be happy to check over your policy! Interested in purchasing one of the coverage options mentioned or a different policy? Let us know! We are here for you.
