Body Works Plus

Do I Really Need to Purchase Rental Car Insurance?

Anyone who’s ever rented a vehicle knows that rental car company’s are great at scaring customers into buying their own provided supplemental insurance coverage (or at least they’re persistent).

But do you really need to tack on these expensive insurance options at the rental counter? The answer is: probably not!

A lot of drivers don’t know that most policies offered through major insurance providers actually cover you in the event of a rental car mishap. Provided the rental is short-term (fewer than 15 days) and for personal use (there are exceptions for business use), a personal auto insurance plan typically covers your needs in the event of an accident or theft.

What’s more, you may also be covered by most major credit cards—that is, whichever card you use to pay for the rental in full. Additionally, many health and homeowner insurance plans provide coverage for personal injury and off-property theft, respectively.

It’s always a good idea to check with your insurer or creditor about the particulars of your plan, but the typical liability, personal injury, and personal effects coverage offered by rental car companies is usually redundant for individuals who have such insurance policies.

A sticking point may be the “loss-of-use”costs rental car companies levy in the event their car is damaged and needs to be fixed. Most companies pass along such fees to the consumer, and because of this will offer collision damage waivers at the time of rental that cover loss of use, towing, and other fees. Again, it’s a good idea to inquire with your insurer as well as with the rental car company before declining this waiver, which can cost up to $20 per day for most rentals.

A well-researched consumer is a smart consumer. Do the leg work, cover yourself ahead of time, and you’ll likely be able to save a couple hundred bucks the next time you rent a car.

So go ahead and get the convertible, you crazy kids!

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