When it comes to renting a car, one of the most common questions that arises is whether or not to purchase rental car insurance. Many people assume that their existing auto insurance or credit card coverage will protect them in the event of an accident, but the reality is that there are often limitations and exclusions that could leave you vulnerable. Consumer Reports has outlined some key questions to consider before making a decision on rental car insurance.
One of the first things to keep in mind is that both auto insurance and credit card coverage may have restrictions on the types of vehicles they will cover, as well as the duration of coverage and the countries where it is valid. This means that if you are renting a car that falls outside of these parameters, you may not be fully protected in the event of an accident.
Rental car insurance can also be quite expensive, sometimes adding an extra $50 or more per day to your rental costs. So when does it make sense to purchase this additional coverage? If you only have liability insurance on your personal vehicle, you may need to consider getting a separate policy for the rental car to ensure that you are covered in case of damage.
To help you determine whether or not to opt for extra insurance, here are some guidelines to consider:
– Is the rental car a higher-end vehicle than your own? Some credit card and auto insurance policies may not cover certain types of cars, such as luxury vehicles or large SUVs.
– Are you renting a car in a foreign country? Many insurance policies only extend coverage to rentals in the U.S. and Canada, so if you are traveling abroad, you may need to purchase additional insurance.
– If you are renting an RV, cargo van, or moving truck, these types of vehicles are typically not covered under standard auto or credit card insurance policies.
If you do decide to purchase extra insurance, there are typically three types of coverage to consider:
– Collision Damage Waiver: This covers damage to the rental car in the event of a collision.
– Loss Damage Waiver: This protects you from theft or damage to the rental car.
– Liability Coverage: This covers you in the event that you are found responsible for property damage or injuries while driving the rental car.
It’s important to note that the terms and coverage options may vary depending on the rental car agency, so be sure to read the fine print before making a decision.
If you are renting a car for work purposes, it’s also a good idea to check with your employer to understand what coverage is provided. Personal insurance and credit card coverage may not extend to business rentals, so it’s important to clarify what is included.
In conclusion, when it comes to rental car insurance, it’s essential to ask the right questions and consider your specific needs and circumstances. By understanding the limitations of your existing coverage and the potential risks involved, you can make an informed decision on whether or not to purchase additional insurance for your rental car.