A Concrete Look at Rental Car Insurance

Published: January 18, 2018

Updated: September 20, 2018



When you walk into to a Rental Car company, the rental agent will ask if you want to buy insurance for the rental vehicle. If your answer is no, you will be asked to indicate each coverage that you do not want. Whatever decision you make in this short time may have incredible impact on your finances. Your decision on whether you need to buy the auto insurance offered by the rental car company before you get there may help you prevent heavy financial loss or waste of money on an insurance cover which you may already have or do not need.

One of the questions most auto insurance agents are frequently asked by a client is whether they need to purchase the auto insurance offered at the rental counter when they rent a car. You might be able to provide coverage for a rental vehicle using an already existing insurance policy you own or you may choose to buy extra protection. Here are some information that you need to make such decisions.

If you will be renting a car and you already have an auto insurance cover, take your insurance I.D card along with you when you rent the car. It may be required by the car rental company and it can save you aggravation and time if you are asked to pull over by the police. The deductibles and coverage on your own car insurance policy will be transferred automatically to any car you rent so long as you are not using the car for renting or business purpose in another country.

Endeavour to check the declarations page of your car insurance policy to identify if you currently have Property Damage Liability, collision and comprehensive coverage. Note down your property damage liability limit and your collision and comprehensive deductible. If you are renting a car in another country, you need to consider buying coverage at the rental counter; this is because many personal auto insurance coverage only protect their owners in the country where the policy is formulated.

If your are renting a car for pleasure, any damage to your rental car will be repaired by the Property Damage Liability aspect of your auto insurance policy. If you had an accident that is covered by your auto insurance quote and the car is in the shop and is being repaired, any damages incurred will be covered by the collision coverage and comprehensive part of your auto insurance policy. This means that the deductibles for this coverage will be borne by you if you damage the rental car.

Many major credit cards claim that rental car insurance is one of the benefits of purchasing their card. The fact is that the coverage provided by these cards will only pay after the limits of your personal auto insurance policy has be exceeded and only if you use their card to pay for the total price of the rental. The extent of protection with credit cards keep fluctuating every day so it is recommended that you put a call to your credit card company to find out the exact amount of protection for rental cars.