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How many times have you gone to rent a vehicle and been offered car rental insurance? The answer is probably every time so long as the rental car agent follows the typical “upsell” script. What is this insurance that is offered to individuals renting cars, and is it necessary? The short answer to that question is that it all depends on your situation.
The insurance offered by the rental car company to individuals renting a vehicle is known as a collision damage waiver. This waiver protects your wallet or pocketbook if you are involved in an accident while driving the rental car. The waiver covers the cost of damages to the vehicle, and is worth considering. However, the collision damage waiver may duplicate coverage already in place so it is important to understand the limits and conditions of the coverage you already have.
Often your primary insurance company will provide coverage to cars you rent while on vacation or due to necessity. As you would not find it beneficial to spend money when you needn’t do so, it is best to take a look at your car insurance policy or contact your insurance agent or company to inquire about your coverage. The company will be able to provide you with the answers that you need in order to feel confident that even a small accident won’t deplete your savings of leave you in financial ruin. It is worth a few minutes of your time to save some money and secure peace of mind in your rental travels.
Other times coverage may also be provided by one of your credit card companies. If your auto insurance policy does not cover rental cars, try giving your credit card company a call to see if they do. Often, you will have to put the entire purchase on the credit card to benefit from the coverage. Some credit issuers may also require that you rent with a particular company to derive the benefit. In spite of any “rules,” this may be the way to go in order to have free collision damage coverage as opposed to having to purchase it through the rental car company and pay a daily rate.
Renting a car can be convenient, but costly. Carefully examining your options with regard to insurance coverage can help you stretch your travel dollars farther.