Do You Really Need to Purchase an Insurance Plan On Your Rental Car?

Renting a car can be a great way to travel. However, many people shy away from renting cars because they aren't sure how the insurance works. Some people think that the rental company is out to scam a few bucks, and some believe that you're required to purchase the insurance. It's not hard to get flustered at the rental counter, wondering whether you need additional insurance, trying to calculate if you can afford it, and it can ultimately put a damper on a vacation.

Taking Control of Your Car Insurance

The first thing that you should do if you're considering renting a car is to understand your own car insurance. Check out your policy or call your car insurance company and ask them for details. Do you have the state minimum or do you have full coverage? It's important to be aware of everything that your car insurance covers. If you speak with an agent, tell him that you are planning on renting a car, and ask if your insurance is enough, or if you should buy a supplement. Since your car insurance company doesn't get any benefit if you buy insurance from the rental car place, you'll get a straight answer.

It's also important to know what products the rental car agency might offer you. The most common product is a collision damage waiver. A collision waiver protects you against damage and theft. Make sure you read the fine print, though. Many collision waivers on rental cars don't cover damage if you're driving while intoxicated or even speeding. It always pays to follow the rules! It's important to purchase this waiver if you only carry minimum coverage on your own car, but if you have comprehensive and collision coverage on your own car, you probably won't need a collision waiver at all.

You may also be asked about personal accident insurance. If you have health insurance or if you're covered by personal injury protection on your own car insurance plan, you shouldn't need this additional insurance. They may also ask you if you'd like to buy personal effects coverage. This covers you if any of your belongings are stolen from the rental car. If you have homeowners' or renter's insurance you may be covered for theft that occurs outside the home. If you're planning on taking items in your rental car that you want protected, like a video camera or a laptop, call your home insurance agent and ask if you'll be covered by your existing policy before you decide to buy additional coverage.

Covering All the Bases

If you plan to rent cars with some frequency, you'll probably want to call your car insurance company and deal with them. It's much cheaper to increase your personal car insurance coverage than to buy the rental company's insurance, which can cost up to $20 a day. If renting a car is a once-in-a-blue-moon event for you, you might want to invest in the additional insurance products offered by the rental agency. Remember that rental insurance is an insurance product, just like your regular car insurance. Doing your homework can save you big money.

If your current car insurance doesn't support your car rental lifestyle, consider doing some comparison shopping. Spending a few minutes on carinsurancerates.com can save you hundreds of dollars. When you're shopping for car insurance, you have to consider all of the angles, even your car rentals!