Whenever you rent a car, you will almost certainly be offered rental car insurance by the rental car agency. Rental car insurance is designed to pay for damages to the rental car if you are in a car accident. In addition, most rental car insurance policies will pay for medical expenses as well.
How It Works
If you purchase rental car insurance from the rental car agency, the coverage will protect you in the event you’re involved in a car accident. If you’re in an accident, you simply need to call the rental car agency and report the accident. The rental car agency well start the process of submitting your claim and the rental car agency’s insurance company should handle the claim much in the same way as with any other car accident.
Most rental car insurance policies are charged by the day, and costs between $10 and $30 for every day that the vehicle is used. While the coverage is somewhat expensive, it generally does not require that you pay a deductible in the event of an accident, and also provides a Collision Damage Waiver which pays the rental car agency for loss of use for the rental vehicle.
Complete Rental Car Coverage
If you choose to purchase rental car insurance, you can rest assured that any damage to the vehicle while in your possession will be covered. This coverage is provided for accidents, scratches or any other type of damage to the vehicle while you have it.
If you don’t own a vehicle, you probably don’t have a car insurance policy. So, rental car insurance is not only a good idea – it is essential.
Pays Regardless of Who Is at Fault
That rental car insurance will pay for damage to the rental car vehicle even if you’re not at fault. This will help you to avoid having to file a claim against the at fault driver’s car insurance company and potentially having to wait for the matter to be settled.
If you aren’t in an accident and you are at fault, rental car insurance will pay for damage to all vehicles as well as medical expenses.
Offers Collision Damage Waiver Protection
Your rental car insurance policy will also provide collision damage waiver protection which will pay the rental car agency for loss of use of the rental car while it is being repaired. Even though many personal car insurance policies cover rental cars as well—most do not pay the rental agency for loss of use on the vehicle.
May Not be Required
If you have comprehensive collision car insurance, your current car insurance policy may already provide coverage for rental cars as well. If you’re personal car insurance policy offers rental car coverage, purchasing rental car insurance may simply be a waste of money and is not needed.
May Not Provide Adequate Protection for Injured Parties
Rental car insurance does offer valuable protection for people that rent cars and want to make sure that they are not personally liable for damages to the vehicle. However, before purchasing the rental car insurance policy, you should check with your own car insurance company and make sure that you need the policy or not. Also, you may want to check with your credit card company as many credit card companies provide car insurance rental car insurance as well if you pay for the rental with that particular credit card.