Rental Car Insurance- To Buy or Not to Buy?

So your plane has just landed in ‘fill in your vacation spot here’ and you head to the car rental counter excited to finally start your much needed get-away.

But just before the car rental agent hands over the keys she asks the dreaded question, “Would you like to purchase insurance for this vehicle?”

If you’re like most people, you’ve heard various things about rental car coverage ranging from, ”It’s an absolute must!” to, ”Don’t waste your money your personal auto policy will cover it!” So, what’s true and what’s not?

The answer is- it all depends.

Before you zip-up that suitcase and head to the airport, do yourself a favor and call your car insurance agent. They will be able to tell you specifically if your auto insurance policy covers a rental car in the event of an accident, theft or other claim. And if so, what types of coverage, and how much, you have.

Next, call the credit card company that you used to book your rental car. Some banks that back the credit cards offer some coverage for a car that you rent with their card.  This all depends on the type of card and the specific bank. Also, this type of coverage can be limited. Usually, the insurance provided with a credit card only covers damages and/or loss of the vehicle you rented, not other vehicles, medical payments for passengers or damaged/lost possessions.

Now that you are armed with that knowledge, you’re ready to make your trip up to the rental counter. If you feel that your car insurance policy adequately covers you, you may opt to skip the additional coverage and save some money. However, if you think the extra coverage might come in handy, or have any doubts- purchasing the additional coverage might not be such a bad idea.