When I travel, I prefer to use public transportation when possible. Unfortunately, there are times when that just isn’t an option, and I have to rent a car.
As you fill out the paperwork, you are usually asked if you want to purchase car rental insurance. That way, if there is damage to the car, you don’t have to pay for it. However, purchasing car rental insurance can add between $15 and $50 per day to your rental. It’s a balancing act, and an exercise in risk assessment. Are you likely to get in an accident?
Before you buy car rental insurance, it’s important to consider the following:
Does Your Regular Insurance Cover Damage to a Rental Car?
First of all, determine whether or not your regular car insurance covers damage to your rental car. Some policies will cover you when you drive a rental car, while others don’t. Find out what is covered, and what you can expect from your own insurance company? If your own company will cover the costs, there is no reason to purchase the car rental insurance from the rental company. Before you make this decision, though, confirm what you need to do to file a claim and have it paid with your regular insurance company. You might have some hoops to jump through.
Does Your Credit Card Come with Rental Car Insurance Coverage?
Many credit cards offer rental car insurance coverage as one of the perks. If you have a credit card that does, there is no reason to get the coverage, as long as you follow the prescribed steps. Usually, you have to pay for the car rental with the credit card in question, and decline the insurance offered by the rental car company. If you don’t pay for the entire car rental with the right credit card, or if you don’t waive the insurance from the rental company, you might not be eligible for coverage from your credit card.
Before you do this, double check that your credit issuer offers this perk. My husband once paid with the “wrong” credit card while on a business trip. His rental car was bumped while it was parked, and the driver of the other car didn’t leave a note. We were left to pick up the tab, since he had used a credit card without the rental car insurance coverage.
When I travel, I try to be very clear about which credit card to use so that I know which piece of plastic to swipe in the right situation. I don’t want to get stuck paying the bill again.
Getting Car Rental Insurance
Making sure you are covered is a good idea. If something happens, like it did to my husband, you could find yourself in a more expensive situation than just paying the premium. Whether you buy your coverage from the car rental agency, receive coverage from your regular insurer, or get it as a perk with your credit card account, make sure that you have the coverage you need to avoid bigger costs later.
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