The Perks of Shopping & Comparing Rental Car Coverage
English: Hertz car rental office, 33910 Plymouth Road, Livonia, Michigan (Photo credit: Wikipedia)
Ask one hundred people if a renter should get the company’s optional insurance on their rental car, and you’ll likely get fifty people who say it is wise protection and should be purchased, and fifty who say it’s a ripoff and should be avoided.
By looking at the facts, however, you can make an informed decision yourself. There are points for and points against getting rental insurance on the vehicle you’ll be driving. Here are some things to keep in mind the next time you’re offered coverage at the agency counter.
You Might Already Be Covered
Insurance experts say that many people are already covered for rental cars through their personal auto insurance or a plan included with a major credit card. That may not be everything you need; however, what’s important is to have collision coverage, which pays for damage from accidents when other cars are involved.
If you don’t have collision coverage in your personal car insurance, then you might want to pay with a credit card that includes such coverage for its cardholders. If you don’t have a card with such a perk, then experts recommend you get the insurance add-on at the rental agency.
Rental Insurance Really Does Protect You
You want to be sure to get the add-on if you don’t otherwise have coverage, because the out-of-pocket costs are heavy for someone lacking collision insurance in the case of an accident involving the rental car. Rental companies automatically provide what’s called statutory minimum liability coverage, but that doesn’t mean much in the case of a serious accident with serious damage.
Such statutory minimum coverage offers no more than the minimum you get from personal coverage, leaving you personally responsible to pay for everything else (what rental car insurance companies call “loss of use”—or money lost when a car is undergoing repairs). For some losses such as theft, the statutory minimum leaves the renter responsible for the entire cost of the car.
Coverage Gives a Lot of Protection for a Little Cost
Pinching pennies during a rental may end up costing a lot more in the case of an accident. Rental insurance costs a total of about $20 to $40 a day. Broken down, it can be seen what each part of that fee is for. Getting the collision damage waiver, also called the loss damage waiver or optional vehicle protection, may cost up to $19 per day. This waiver, however, takes all financial responsibility for collision damage off you and onto the car rental agency.
Liability insurance is a bit different. It can provide protection of up to $1 million for liability in an accident, and costs just $7 to $14 per day. This is one area, however, in which you should already be covered by your personal car insurance. Personal accident insurance is $1 to $5 slated for medical and ambulance bills in case of an injury in an accident involving the rental car.
Comparing Quotes for the Best Price
As in many things, a smart consumer will not depend only on information provided by the agency. The Internet is full of information on what each part of insurance coverage protects you from, and whether your personal insurance might already have you covered.
Also, review sites may be of great help in deciding which rental car agency offers the best insurance rates and customer service in case of an accident. Armed with information about your own and an agency’s insurance coverage, you should be ready to rent and drive confidently, knowing you are protected.
About The Writer: this rental car coverage article was written by Marcus Melva, a freelance writer and insurance researcher. He’s been passionate about sharing his knowledge on insurance and financial services for over a decade now.
Category: Automotive, Saving Money, Vacation
