Rental Car Insurance: What You Need to Know
If you're planning to rent a car, you'll likely be offered rental car insurance from the rental car company. But do you really need it? Let's explore what rental car insurance is, what it covers, and whether or not you should consider purchasing it.
What is Rental Car Insurance?
Rental car insurance is a type of insurance that covers you while you're driving a rental car. It's typically offered by the rental car company and can be added onto your rental agreement for an additional fee.
What Does Rental Car Insurance Cover?
The coverage offered by rental car insurance can vary depending on the rental car company and the policy you choose. However, most rental car insurance policies will cover:
- Collision Damage Waiver (CDW): This covers damage to the rental car in the event of an accident.
- Theft Protection: This covers the rental car if it's stolen.
- Liability Insurance: This covers damage or injury you cause to others while driving the rental car.
Should You Purchase Rental Car Insurance?
Whether or not you should purchase rental car insurance depends on your existing car insurance policy, your credit card benefits, and your risk tolerance.
If you have comprehensive and collision coverage on your own car insurance policy, it's likely that you're already covered for rental cars. Additionally, some credit cards offer rental car insurance as a benefit, so be sure to check your credit card benefits before purchasing rental car insurance.
However, if you don't have comprehensive and collision coverage on your own car insurance policy and your credit card doesn't offer rental car insurance, it may be worth purchasing rental car insurance for peace of mind.
How to Purchase Rental Car Insurance
If you've decided that you want to purchase rental car insurance, you can typically add it onto your rental agreement when you pick up the rental car. Be sure to read the policy carefully and ask any questions you may have before signing up for rental car insurance.
Conclusion
Rental car insurance can offer a sense of security while you're driving a rental car, but whether or not you need it depends on your existing car insurance policy and credit card benefits. Be sure to weigh the pros and cons before deciding to purchase rental car insurance.