You May Not Need Rental Car Insurance

Published: March 5, 2018

Updated: May 15, 2018



In simple terms, rental car insurance is a coverage that is optional which you may choose any time you rent a car from a rental agency. This option is normally included in many car insurance policies. It is used when you are compelled to rent a car while your car is currently been repaired or serviced. Generally, this pays you a small amount each day until your own car is ready.

An advantage with this coverage is that it can compensate you a little for your repair expenses as well as your rental expenses. It could also help you a great deal when you get involved in an accident while driving a rental car.

You may not need rental car insurance depending on the type of insurance policy you have on the vehicle you own. Most times people pay for expensive rental car insurance when they do not need it in the first place.

It is a fact that rental car companies will like to sell car insurance to you because it adds to their profit. Another fact is that you may not need that insurance. Under the right circumstances there are benefits to buying these policies but you need to make sure that it is what will address your need before choosing it.

You need to understand that when an auto rental agency gives you a price quote for rental insurance, the price means is per day and not per amount of time the car is in your possession.

This has happened to someone in the past. The car agency told him that the cost would be an average of $25 for auto insurance. He kept the car for a week and when he got back, the bill was reading over $180. The young man obviously was not happy and when he inquired, he was told that he had agreed to it.

You need to have a good car insurance policy so that if you have an expensive car with a comprehensive insurance, it will also include any car you drive including rental cars. The only challenge with using your personal insurance to cover rental vehicles is the high deductible; this should not be a problem if you are a safe driver who will rarely cause an accident.

The benefit of buying insurance from a rental agency is that there will be no deductible if you have an accident and the company will handle everything.

If you have no insurance from a rental company, all the charges will be put on your credit card. Your personal insurer will reimburse you. If you have a sound comprehensive coverage with your car insurance firm, you may not require insurance from a rental car agency. This however, is your decision to make and you need to do what you think is best in such situation.

A rental auto insurance may or may not be required; it depends on the kind of insurance you have currently on your personal vehicle. So ensure you are not spending unnecessarily when renting a car.