Rental car insurance: do you need it?
You’re excited and ready to start your vacation after a long flight; all you need is to get your rental car and you’re off! The only problem is that they hand you a clipboard with an insurance contract with more confusing insurance options. You want to be insured in case an accident happens – especially when you’re on vacation – but you don’t want to make payments that could end up doubling your total rental car fees. Find out what you should do when you ask yourself, “does my auto insurance cover rental cars?”
You already have your car insurance, so do you really need that rental insurance from the rental car company?
Quite often, the answer is not universally black & white for everyone. The first step you should do is to check what your car insurance covers. If you carry comprehensive and liability coverage on your own personal car, coverage will extend to your rental car; there’s no need to acquire extra insurance. The general rule of thumb is as follows: if the car is of similar value to your personal car, in all likelihood, your coverage will be adequate for the rental. If your insurance policy does not cover you, rental insurance is very affordable—coming to only about $5 a month.
Checking with your credit card company should also be on your to-do list. The credit card that you used to rent the car may provide additional coverage in case of any gaps in your insurance.
The page that is most commonly signed by car renters is the Collision Damage Waiver (CDW)/Loss Damage Waiver – this is not an insurance product, rather it’s a waiver that transfers financial responsibility from you to the rental car company in case of damage/theft. But, as mentioned before, check with your insurance company. You may be able to decline this form of coverage.
Always check with your insurance company when you’re unsure of anything regarding your coverage. For an auto insurance policy that will go to work for you, contact Lou Aggetta Insurance Services in Pleasant Hill today.