The Types and Benefits of Rental Car Insurance

Whether you are on vacation with your family or on a business trip for work, you should always understand the ins and outs of renting a car. There are lots of ways to make mistakes, and you can wind up spending way too much money on that set of rent-me wheels that you probably would never buy yourself in a million years. But what do you do if you have an accident in a rental car?

To many people, the thought of paying an additional sum for car insurance through your rental agency seems like a waste of money. Don't you already have car insurance on the car you own and normally drive when you are at home? Why should you bother with any of it?

Under certain circumstances there are occasions when having a policy through a rental car insurance provider could save you a boatload of money. For instance, if you decide to purchase rental car insurance, and you back into a wall you can just turn the vehicle back into the rental car company and they handle the rest. Also, since your insurance company won't be footing the bill your monthly premiums won't go up either.

On the other hand, if you can afford to pay your regular deductible if you damage your rental car, your current insurance provider may already apply your insurance to your rental car. Check with your insurance agent to see if it's covered.

Rental car companies offer a number of programs, coverages and services, so if you are interested in this kind of insurance, remember to study what is on offer via their website before you arrive at the rental counter.

Just as with your personal car insurance carrier, most car rental firms offer services like comprehensive, collision, liability and even theft reimbursement coverage in case you have valuables stolen from your vehicle. That can come in handy if you are visiting a warm yet touristy locale and someone decides to snatch your purse out of that rental convertible you thought you got such a good deal on.

Do note, however, that if the program you are buying into at the rental counter covers less than your own personal insurance does there is little point in buying any extra security. Many credit cards also grant users a limited level of insurance coverage to users who charge rental cars to their cards. To be on the safe side, however, call your insurance agent before going on any trip to make sure you know if you need any extra insurance for that rental car.