When you're renting, do you really need that rental car insurance coverage?
Should you get that rental car insurance coverage they always offer you before you run through the rain to pick up your nondescript transportation appliance? It is definitely something to consider, what with the insurance company’s propensity to jack your rates through the roof at the slightest sign of trouble. After all, you could avoid a claim on your own insurance that could be just the excuse they’d need to raise your rates (like they’re not high enough already!).
First of all, you should exhaust other options at your disposal, such as any such coverage that might be included with your credit card. Many credit cards include rental car insurance, provided you rent the car on the card in question (makes sense). One thing to be aware of, should you opt for your credit card’s insurance, is that the coverage may be limited to the rental car only. Just dinged a brand new S-550? Ouch! Looks like the damage will come out of your hide or your regular car insurance. That leads to the next point.
A loss damage waiver will help protect you if your rental is damaged, stolen, or abducted by aliens. Another nice feature that is included in many such waivers is a “loss of use” provision. That helps in case the rental car company decides to bill you for the time they can’t rent the car while it is in the shop because of something you were responsible for, such as running over a parking lot bump stop.
Make sure you contact your existing car insurance agent. They’ll be able to examine your present policy and let you know what the limits of your coverage are vis-a-vis rental cars. You don’t want to pay for something needlessly. Although it may give you some piece of mind not to make a claim against your insurance should you wad the rental into a Jersey barrier, you should know that if you are in an accident that was your fault, your insurance company will discover it at some point. In such a case they will likely raise your rates anyway, weather you made a claim or not.
Another thing to be aware of is that rental car coverage will probably not protect you if the accident was caused by excessive speed, DUI, or reckless driving. Unfortunately, bad behavior seems to follow many people when they rent a vehicle. Things they would never dream of while driving their own cars seem to happen regularly while they’re behind the wheel of that hot Hertz Camry. Don’t let this happen to you, no matter how much that 157hp 4-cylinder tugs at the reins.
So, do you need that rental car insurance? Only you can make that decision, but you should make sure you have all the right information before you do. Happy motoring!
