Should You Get Car Rental Insurance?

So you are going on a break this summer and hiring a car. Before you log onto the actual web site as well as pick up the loaner at the counter, you should consider one of the first and most important questions you will be asked; will you be buying rental car insurance?

The majority of financial experts and business reporters in the media will certainly say never purchase it. But that is not wise. Paying a few extra dollars for insurance may be one of the smartest things you can do.

Wherever you have auto, home or perhaps renters insurance, is the place to start for your best rates. You will want to check out a bundled insurance policy that will cover several things you already have. This would include your car rental.

If your auto insurance contains collision and complete coverage, then this also needs to cover the car hire within the limits of the current coverage. Furthermore, if you charge the expense of the rental car over a credit card, your charge card may include rental car rider as a card holder benefit.

But don't just assume that because you have auto insurance with collision and comprehensive protection or charge your own rental car on a bank card, that rental car insurance policies are a waste of your money. Listed below are three solid explanations why buying rental car insurance plan can be worth it.

1) In lots of states, auto insurance procedures do not pay for the rental-car company's "loss of use" - the loss of rental fees through the company while the automobile is in the shop for fixes. If you want to cover this kind of, then you need to buy the actual rental car insurance.

2) About to drive a rental car in another country? Before you do, check into the insurance restrictions required by those nations around the world and you may find that your overall insurance is lacking.

3) One other thing to consider is insurance for personal effects. Any time traveling with digital cameras, laptop computers and iPods, the possibility something will get dropped or stolen on a trip is higher. The expense to replace these items can definitely add up. If you have property owners or renters insurance coverage, particularly the form that also includes replacement value protection for personal property, your current insurance must cover this. But some folks have increased their own deductibles to $1000, $2500 or maybe more to offset soaring insurance costs. Only a reduction in excess of the insurance deductible will be covered by the existing insurance. Because of the relatively low cost of personal effects coverage available from rental car insurance, which in turn averages about two dollars, the extra insurance is worth it.

Not convinced? And then think about this. If you report a claim on your individual auto insurance policy for a car accident you cause having a rented car (which can be more likely because you tend to be driving an unfamiliar automobile in an unfamiliar area), your current auto insurance firm may mark you as a higher risk driver. The result is an increase in the auto insurance premiums. It might be better to pay for rental-car insurance for the week rather than risk many years of higher auto insurance monthly premiums.