Renting a car can offer many benefits only if you are able to make the right choice. Choosing the right model, the right rental plan and the right car rental company – there are many things to be taken care of. One more thing that you need to consider is the ‘Additional Car Rental Insurance’. Most car rental companies would try to persuade you to buy the additional insurance, but is it worth it? How would you decide? Let’s get into the details.
Car Rental Insurance
Oftentimes renters get confused over whether they should buy additional insurance or they should turn down the offer. This is mostly because many car renters have no idea about car rental insurance or they do not know when they need it.
If you find yourself in a similar situation, don’t get confused. Rather ask yourself a few questions like:
- Do I have car insurance?
- Have I used a credit card to hire a car?
- Does the credit card offer me some coverage?
If the answers to these questions are yes, then there are high chances that you don’t need an additional insurance, since you have the required coverage. Check out whether your car insurance or credit card company offers car rental coverage or not. If they do, carry a proof (photocopy of policy) along with you when hiring a car. No matter what don’t get persuaded by what the staffs say. Evaluate your situation and buy an appropriate insurance. Oftentimes a basic CDW (collision damage waiver) is enough, so why waste money on other policies.
Types of Car Rental Insurance
In order to decide whether you need insurance or not, you first need to know about the type of car insurance available. The following are your choices when renting a car:
- Collision Damage Waiver
- Supplemental Liability Insurance
- Personal Accident Insurance
- Personal Effects Coverage
Things to Know Before Buying an Additional Insurance
You can save a lot of money by making the right choice. So before visiting the car rental office, here are some things that you need to know:
- Auto Insurance Coverage: if you own a car, chances are you have auto insurance. In most cases, the auto insurance would also cover rental cars, so you might not have to buy extra insurance.
- Credit Card Benefits: Many credit card companies provide coverage for rental cars, though the amount of coverage depends on the type of card you use. So before renting a car, make sure you enquire about the benefits offered by the credit card company.
- Read the car rental agreement carefully to check your responsibilities under the state laws in case an accident occurs and the car rental company’s waiver. If the liability is limited by the state laws and you have enough coverage (from auto loan or credit card) you can safely rent a car without buying additional insurance.
Whether you need an additional insurance or not, completely depends on your situation. So make sure you evaluate the situation well and consider the available coverage, before buying car rental insurance from the rental agency. Make a smart choice and make your trip memorable.