Valuable Tips on Rental Car Insurance

Published: February 15, 2018

Updated: May 15, 2018



Many people who travel choose to rent a vehicle for their journey to avoid congestion at the airport, scanning, and heightened security. Renting a car is a good alternative mostly when you are planning to travel to a nearby destination. Many do not know whether they will need to insure the rented car. Although the answer to the question is yes, the coverage does not necessarily have to be bought directly from the rental company.

Bear in mind that there are a few available options when buying rental insurance. They include:

  • Credit Card
  • Your personal car insurance
  • Car rental company
  • Through vacation packages

Credit Card:

Many credit cards will provide coverage for a rental car. An important requirement is that you buy your rental with the same credit card that you want the coverage to extend from. When an accident occurs, there could be some fees on your credit card. Your credit card company could charge you for number of days when the vehicle is undergoing repairs.

Personal Car Insurance:

Your personal car insurance company usually provides coverage for rented vehicles free of charge. To benefit from this, you will need to insure one of your personal vehicles with full coverage so that the same coverage will be extended to a rental car. All the deductibles will also be the same for your rented car.

When an accident occurs, a car insurance firm will not cover for all the fees relating to a rental vehicle. The rental company will charge for the number of days that the rental car spends in the workshop while being repaired. Ensure to check with your insurer if they will cover for the rental fees in the event of an accident.

Car Rental Company:

Purchasing rental insurance straight from a rental company is the best approach as they will offer lots of coverage levels for the individual and the rental car. The disadvantage of buying rental insurance through a rental company is that the price will be more expensive than other available options. The benefit of this is that you will not have to make any payment out of pocket if a car accident occurs.

Vacation Packages:

A very good decision is to buy insurance via a vacation package particularly if you are travelling outside of the country. Bundled offers are usually much cheaper and you might be saving a lot of money. Ensure to find out if you will be liable to any fees when involved in an accident. The funds that you have initially saved should be kept aside for any fees that may arise in the event of an accident.

If you choose not to buy car rental insurance from a rental company, depending on the fees, you may be saving money in the long run if you do not get involved in an accident. Essentially it is a gamble, so ensure you prepare and plan ahead for any possible fees that could be alarming. Buying insurance straight from a car rental agency could be expensive but will offer you the best protection and coverage from expenses out of pocket.