As long as there has been the option for additional insurance coverage through car rental companies, the question has been, “Is it worth it?” If you listen to the car rental agency, you might feel silly not safeguarding the vehicle and yourself with their coverage, but there might be no need for this. Whether or not you need rental car insurance can depend on a variety of factors including the use of the vehicle, location, travel distance, your current insurance coverage status, whether other people will be driving the vehicle, and your driving record. Therefore, consider these rental car insurance pros and cons before making your decision as to whether this type of coverage will be right for you.
Pros
Low/no insurance – If your current insurance coverage is minimal, or you don’t have any automobile insurance at all, it can definitely be a good idea to get the rental company’s policy. This way you are safeguarded against any unforeseen events that could cause damage to the vehicle or bodily injury to yourself or others. Checking with your current insurance company ahead of time can help avoid purchasing extra or unnecessary coverage through the rental company.
High deductible – If you carry a higher deductible on your car insurance through your insurance company it might be worth purchasing the rental company’s to avoid having to pay that deductible in the event of an accident. Even little things like a scratch, a ding, a dent, or a broken window, whether your fault or not, can add up, and paying for fifty dollars worth of rental coverage is better than a five-hundred dollar deductible or more.
Peace of mind – Even if you already have auto insurance, having additional rental car insurance coverage can provide peace of mind. Remember, even in cases of theft, vandalism, storm damage and other events beyond your control, you will most likely have at least to pay your deductible if you don’t carry supplemental insurance through the rental company. Therefore, having that added protection can help take the worry and concern out of your travel.
Cons
Added cost – Obviously, the biggest con to carrying rental car insurance through the rental company is the additional cost. Car rental insurance can typically run from around $10-$30 or more per day, depending on the company and the types and amounts of coverage you want to carry. Over the course of a vacation or long trip, this additional expense can really add up.
Lack of information – Unless you have some time to burn and actually read over the car rental insurance agreement, you probably aren’t sure exactly what you’ve signed, and what is or isn’t included in the rental service’s coverage. This could mean the additional coverage you have purchased is overlapping your current coverage, making it unnecessary and costly. You might also want to check to find out whether the credit card you are using to cover the cost of the rental provides additional insurance coverage for rental cars.
Disclaimer:
This article is for informational purposes only. Any action taken by the reader due to the information provided in this article is at the reader’s discretion.
