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Car Rental Insurance: To Purchase Or Not To Purchase? That Is The Question.

September 16, 2015

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Whether or not you need to purchase rental car insurance depends on:

  • Your existing automobile policy –

If you already have a car insurance policy you probably have coverage for a rental car.  Most carriers do cover rentals under normal coverage, but don’t assume.  A simple call to your agent before you rent could make all the difference.

  • Which credit card you are renting with

Once upon a time, the credit card companies would cover an accident if you used it to pay for the rental.  This is not something you should count on anymore, however, as there’s been a trend in the industry to cover less than they used to.  Again, call your credit card company before you rent the car.

  • Where you’re going

Also, if you rent in the USA and drive into Mexico or Canada, you may not be covered.  ASK!  There are supplemental policies available.

  • A further warning:  READ THE RENTAL CONTRACT!

Some rental contracts have a clause which states they require you to pay full market cost for all repairs.  Most insurance policies pay replacement costs.  This leaves a gap that you will have to fill out of your pocket book.

Make the necessary calls ahead of time, get the coverage right and hit the road with confidence (not literally, please).

As always, thanks for reading.

—E. A. Cooke

To learn more about commonly misunderstood insurance terms and other insurance topics subscribe to the Avanti Reader via RSS, follow Avanti Business and insurance Services on Facebook or Twitter (@AvantiInsurance) to receive notifications of future posts.


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