Getting Liability Insurance on Rental Cars

According to the law, if you rent a car, you must have liability insurance on it. The rental car business is going to try to get you to take a policy through them. While you legally must have liability insurance to rent a car, you do not have to purchase it through the rental care agency.

Am I Already Covered on a Rental Car?
As stated in other articles I wrote on car insurance, it is wise to know what your personal insurance policy covers. Check with your agent to see if there is a clause in your policy that covers you and the rental car for medical or liability.

You may find that you are already paying for it, so why purchase it again through the car rental agency? You will have to bring your policy with you when you rent the car so that you can show proof of insurance coverage.

Check your credit card agreements as well. You have to have a credit card to rent a car, so some companies offer protection automatically when you use the card to rent the car. Be sure that yours does.

Call the credit card company if you cannot find it on your agreement. If it is not automatic, they may offer you a better deal than the car rental agency. Just be sure to know what type of liability coverage it offers.

Extended Insurance Coverage on Rental Cars
The law only requires that you have liability insurance on the rental car. Liability insurance means that if you hit another car or damage anyone's property, the liability insurance will cover those damages.

It will not cover any damage to the rental car, your personal property in the rental car, or any medical expenses you or a passenger in the rental car experience. You may want to step up the policy to cover these things, especially if you are going on a long trip in a high traffic area.

You are responsible for any damages to the rental car, so you better have the insurance to cover it, or be able to afford to pay for it, should anything happen to the car while you have it rented.

Always check with your own insurance agent to find out what your policy covers on a rental car before you purchase a policy from the rental company. You may be spending money you don't have to.

You are legally responsible for having liability insurance on the rental car. That does not mean that is your best option. A larger coverage for both you and your family will give you peace of mind to enjoy your vacation.

Sources:

All Business.com

Net Quote.com