Does rental insurance make sense? Many of you may be asking this question when you want to rent a car. The idea behind getting rental insurance is to protect you and the vehicle in case of any accident just like in car insurance. What may not make sense is buying all of the coverage provided by a rental company. It is very important that you decide on what coverage to buy and what not to buy.
Important factors to keep in mind when buying rental coverage
On the one hand, buying all the coverage provided by the insurer may increase your insurance costs, while on the other, not buying coverage may put you in a bad financial condition when you need protection. There are certain factors to keep in mind when you want to buy rental car insurance:
Collision or comprehensive coverage: If you have adequate collision or comprehensive coverage from your auto insurance, you may not need to buy Collision Damage Waiver (CDW) or Loss Damage Waiver (LDW). However, you may still have to pay the deductible if the rental car gets stolen or vandalized or even if you crash it. If you want to buy CDW or LDW, you must opt for the one with the broadest coverage. Check with your rental company, since they may have different levels of waivers.
Liability Coverage: If you are covered for any liability through your auto policy, you may not buy liability coverage under rental insurance. Most states require these companies to provide the minimum required liability protection free of any charge. If you think you do not have adequate liability coverage through your auto policy, you may buy more insurance through your rental policy for better protection. The liability coverage that you have from your auto policy will kick in first if you get involved in an accident with your rental car and the excess will then be covered by the rental policy.
Health and homeowners’ insurance: If you have health insurance and homeowners insurance, you may not need to purchase accidental health and personal property insurance under a rental car policy. In case of any medical situation, your health insurance will kick in first, and same is the case with home insurance when it comes to losing any personal property.
The best thing to do when you want to buy rental insurance would be, to check your auto policy and your home insurance as well as health insurance, to see how you are being covered for different situations. This way you can save money on your rental car and not buy excess insurance that you may not need at all. Check your policy papers properly and in case of any doubt speak with your insurance agent.