Auto Rental Insurance Coverage Truths Everyone Should Know

When you rent any vehicle, almost all rental companies will ask you if you would like to purchase auto rental insurance coverage also known as loss waiver or collision insurance for short. The insurance you purchase will likely be added onto your daily rental fees and can increase your bill from $10 to $50 dollars a day depending on the make and model of the rental company. The rental company salesperson may try and scare you into buying the extra insurance, warning that even a slight scratch could cost you thousands of dollars. Auto rental insurance coverage can sometimes be complicated and involve a tough choice, and most will just follow their instincts to be safe rather than sorry. The salespeople at the rental company can put a lot of pressure on you. This can make refusing the rental insurance difficult.

Because rental insurance is a large profit generator for these companies, there are many truths about auto rental insurance coverage that the salespeople do not want you to know.

Check Your Own Coverage

First and foremost you should always check your own comprehensive and collision coverage insurance if you have any. Most of the time there will be an explicit statement regarding the coverage and the extent of coverage for a rental vehicle. Your personal coverage will usually cover car damage and theft. However make certain that you check with your coverage provider before taking it for granted. If the rental car you have is worth very little, you may not want to use your insurance to cover it because your premiums will go up and you may end up spending more money in the long run.

Paying for Insurance with a Credit Card

Most credit card companies will offer rental insurance free of charge if you use their credit card to purchase the entirety of your car rental.  Most Visa cards will offer an excellent coverage for auto rentals, and the process is automatic. These credit cards insure the auto rentals because it attracts a large purchase. To investigate this possibility, simply call your credit card provider with the number on the back of your card and inquire about rental insurance policy.

A Little Research Goes a Long Way

Remember that liability coverage is always covered in your own personal policy as mandated by law, but collision is not always covered. The easiest way to insure an auto rental is easily a credit card purchase, but if credit trouble is a problem, you may want to stay away from that avenue. Taking a small amount of time before buying the extra insurance from the auto rental company can save you a large amount of money.
blog comments powered by Disqus