Should You Sign up for Rental Car Insurance?

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If you’ve ever rented a car before, chances are high that you’ve encountered one of those representatives who badger you to sign up for the agency’s car rental insurance. This is in case something happens to the car while you’re using it. If you think about it, it makes sense but not all the time.Before you go ahead and sign-up, make sure you double check your car insurance first as well as your credit card.

Does your personal car insurance cover car rental?

Car rental is an extra option or protection you can either opt in or out. Those who have a reliable car generally refuse this added feature to lower the cost of their premiums. Those who not optimally insured, however, are better off including the extra protection to their policy.

If you believe you signed up for this extra feature, check your current policy and inquire about the coverage that extends to your car rental. Deductibles usually still apply provided that the rented car is for your personal use.

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Does your credit card cover car rental?

If you’re paying your car rental with a credit card, you’d also want to check with your credit card company if insurance is covered. Majority of credit cards generally offer some form of rental car protection as part of your signing up incentive. The extra protection for credit cards are generally secondary meaning that there are things you need to do first before the coverage kicks in.

With credit cards, coverage often only include collision damage and theft but not personal injuries. To avail of the coverage your credit card extends, make sure that you decline the rental company’s waiver for collision damage. You also need to be the primary renter and you have to pay for the car rental fees in full using said credit card.

When is car rental insurance a good idea?

Car rental insurance from the rental company is a good idea when you don’t have any form of insurance at the moment. Buying the liability coverage from one of those representatives is a good start before you drive away. But if you do have insurance, signing up with the company isn’t really necessary.

Other times that getting a rental insurance makes sense is when your existing car insurance policy do not include collision coverage and when your insurance is under the commercial category. If you want to pay a high deductible on your current policy, opting out for the extra protection is the way to go. You only pay or sign up for rental insurance every time you rent a car which hopefully is not often.

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