Rental Car Insurance: Is it Necessary?

rentalIf you frequently rent vehicles while on trips, you probably have been offered rental car insurance more than a few times.  You may have always turned it down thinking that your business’s insurance or your personal auto policy will have you covered if anything were to go wrong during your time with the rental car.  While that is true, there are some stipulations with your policies that may cause you to reconsider passing on that rental coverage.

Your personal auto policy does cover you when you are driving a vehicle other than your own.  However, it only covers you within the limits you set for your policy.  If you only have the minimum required insurance, you will not have coverage for anything that happens to the rental car itself.  You will need to have comprehensive and collision coverage if you are looking to be covered for rental car damaged as well.

Also, you must remember that your personal auto policy has deductibles that must be met before your policy will pay for anything.  While that may be ok for your own vehicle because you can choose whether or not to file a claim, when dealing with rental agencies you will most likely be required to pay for any damages in full.  Having the rental insurance is beneficial in those times because they carry no deductibles and will pay for damages up to the limits of the policy.

It really is a toss up as to whether or not you should purchase the rental insurance when it is offered.  You must weigh the cost of the insurance against the probability that you will need its benefits.  If you are concerned about it, please feel free to call us for a more thorough explanation.  We may be able to help make your decision about purchasing the rental insurance next time you rent a car.

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