Do I need Insurance Coverage for Rental Car?

Frequent travelers often find themselves being offered insurance for their rental cars. The question here is if such a thing is really necessary? The fact is that car accidents could happen regardless of whether a person is in their home fort or not. Hence, for the sake of safety, most individuals allow themselves to be talked into purchasing insurance for their rental car. The bad news is that depending on the individual's personal auto insurance, purchasing rental coverage could actually be redundant.

Dynamics of Rental Car Insurance

Insurance for car rentals usually provides different types of coverage. These include the following:

– Collision Damage Waiver - Also known as CDW, this provides protection against theft and damage. It could cost around $19 per day or lower depending on the type of coverage a person chooses. Note that CDW has certain limitations. For example, individuals who are driving drunk or speeding would not be covered by the damage. In some cases, even driving on unpaved roads could be a cause of nullification. This is why individuals are advised to read the fine print thoroughly before signing. Note that CDW may also be called LDW or Loss Damage Waiver.

– Personal Accident Insurance - Costing about $5 per day, this coverage takes care of any medical bills for the driver and the passenger. Most travelers do not really take this since it's typically included in a person's auto policy. For those who want extra protection however or who have inadequate coverage, getting one would be ideal.

– Personal Effects Coverage - again, individuals with good auto insurance could skip this kind of coverage. It refers to any personal items damaged in the course of the accident. It would usually cost around $5 everyday. Items that are kept in the car and are stolen would also fall under this category. However, do read the fine print since insurance companies are unwilling to pay unless the individual has proof of ownership with them such as receipts.

– Liability Insurance - This takes care of any excess liabilities that a person might encounter during the course of car rental. The coverage can cost around $14 per day and is only used as an "extra". By itself, Liability Insurance is not nearly enough to provide adequate coverage for individuals. Frequent travelers often skip this and opt for a non-owner liability policy since it's cheaper in the long run. For those who rarely rent cars however, checking the Liability Insurance option would be better.

Is your Insurance Enough to Cover Rental Cars?

This is the most important question to ask when deciding whether or not to purchase rental car insurance. Is the renter's insurance coverage enough to keep them protected in a rental car or would they need additional coverage? There are several ways to look at this depending on the individual's current situation.

• Business Travelers - Businessmen or those who are in a specific location in pursuit of their job are typically covered by their company's insurance. In instances like this, it is advisable for individuals to call their employer as soon as an accident occurrs. This way, the situation would be formally filed, allowing the company to make a claim in the soonest possible time. The rule for car accidents still apply during this time – get the information of the other driver and record all relevant data.

• Credit Card Users - Some credit card companies today can only provide secondary coverage, allowing them to forego rental insurance. However, it is important to understand exactly how this coverage works since there is limited liability involved. Typically, credit card companies would require a person to report the incident within a specified number of days. Should the person fail to do this, then the insurance would not be paid on their behalf.

• Car Insurance Holders - Prior to renting a car, make sure to read the fine print of the auto insurance coverage. This should let individuals know if they still need to purchase extra or if their current policy is enough to keep them protected.

How to Avoid Double Coverage

Some travelers could spend thousands of dollars purchasing insurance that they don't need. This is why as much as possible; individuals are advised to find out exactly how their policy covers them. Also take note of the frequency of the travel. Those who rent cars often would be in a better position if they purchase extensive auto insurance rather than separate rental insurance each time.

When it comes right down to it, there is nothing wrong with purchasing rental car insurance. For the sake of saving costs however, it is always best for individual to double-check their coverage and find out if they could forego the option. If possible, visit the domain of car rental sites to find out what kind of protection they offer their clients.