Should You Buy Rental Car Insurance?

Rental car insurance purchase is a decision that should be made when initially planning a trip. Car rental agents will ask if you would like to purchase insurance, and the decision as well as the responsibility will be yours to bear. While rental insurance is optional, deciding to travel without it could turn into a costly mistake. Vehicle repairs can be costly, as well as liability for any traffic incidents. Weigh your options, as well as potential costs, as rental car insurance has both pros and cons.

Car Rental Insurance; Is it provided by your auto insurance policy?

Before signing an agreement to purchase rental car insurance, check with your private automobile insurance for coverage options. Some private insurance policies already cover car rentals, and will provide a coverage amount as well as specifications. Look over insurance policy for in-state or out of state coverage. If your trip is out of state, or to a foreign country, your private auto insurance may or may not cover rental cars. In addition to initial coverage, check your policy for expenses that will be covered such as medical bills or vehicle repairs.

Car Rental Insurance; Will business cover expenses?

If you are planning a business trip, you should check with the employer for any corporate coverage already provided. There is no need to purchase additional car rental insurance if your company has a policy in place. In case the employer does not have coverage, check for business trip reimbursement policies so that the rental car insurance amount can be reimbursed to you. Keep track of all receipts and documents provided by the car rental company, as they will be required for reimbursement to be issued.

Car Rental Insurance; Is it money well spent?

Most travelers will breathe a sigh of relief when a trip is over and there has been no damage to the rental car. They will feel as if money spent on rental car insurance was a waste, as nothing bad happened. However, accidents can occur, even if it is not the rental car driver's fault. Even minor damage to the rental car will require you to owe an explanation to the rental car agency.

Rental companies will charge for the physical damage to the vehicle, repairs, labor hours and materials. In addition to these claims, some companies charge for diminished sale value of the rental car. Vehicles that have been in previous accidents or have had repairs would have diminished resale value. The rental agencies may also charge for loss of rental income, as the vehicle was unavailable to rent to other travelers.

Car Rental Insurance; Are you willing to take the risk?

Rental car insurance comes down to a decision; yes or no. The driver choosing to rent a vehicle is also taking all the responsibility, including any monetary claims. If you are willing to take the risk, and hope for the best, then rental car insurance is not a concern. However, if you would prefer to be rather safe than sorry, rental car insurance should be an important part of your trip planning.