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Apr 25

Should I spend money on extra insurance when I rent a car?

RentalCarAs we head into the summer vacation season, I wanted to provide some help on a question I receive fairly often:  When I rent a car, should I buy the extra insurance from the rental car company?  For many insurance companies, your Collision and Comprehensive coverages will carry over to your rental car, so you don’t necessarily need to pay for the extra coverage (in the United States or its territories) – note that you’ll still be responsible for your deductible, just like you would if it were an accident in your own car.

However, it is important to understand that if you do have an accident while in your rental car, the cost of simply fixing that car is NOT the only cost you’ll likely have to pay.  There are other fees (such as Loss of Use, etc.) that the rental car company can (and will) charge if you damage one of their cars. These extra fees are not regularly covered by your personal auto policy, and you would, therefore, be personally responsible for them outside of your personal auto policy.  In addition to the coverage from the rental car company, another option could be your credit card.  Some credit cards provide coverage for those extra fees if their card is used to pay for the rental car, so take a few minutes to check with your specific credit card company and make sure to use a card that does cover those extra fees.

Hopefully this helps answer the question you may have the next time you’re asked whether or not you want the extra coverage at the rental counter.  If you have any questions or need anything of us at anytime, feel free to call or e-mail.  Have a wonderful weekend!