Is Rental Car Insurance Scam or a Brilliant Move?

Rental car insurance varies in it being a scam or a brilliant move. This is because in some cases it is needed. In other cases, it's not needed, but some rental car companies may still use dishonest tactics to gain sales. Normally, when you have full coverage insurance, it covers rental car insurance for personal usage. However, if renting a vehicle for commercial/business reasons, your full coverage insurance may not cover it. If you have only liability insurance, you may need to get additional coverage, like damage waiver, for the rental car. The only way you may not have to get that extra coverage is if you have a credit card that would cover rental car insurance if you use their credit card for renting the car. And in this case, it's best to contact your credit card to find out the details concerning rental car insurance. According to many insurance companies, you should check with the credit card company to see what other rental car coverage they provide. You can check by calling the number on the back of the credit card to ask those questions before purchasing more protection.

It's also a good thing to know the different types of at the counter choices. There are four coverage options which include the following:

Coverage options:

Loss-damage waiver (collision damage waiver)

Waives financial responsibility of the customer if the rental car is stolen or damaged. It also covers charges from loss of usage due to towing charges, car in the shop, etc. The cost for this coverage is around $9 to $19 per day.

Liability coverage

State mandated coverage that protects the customer of potential lawsuits, and it costs around $7 to $14 per day.

Personal accident insurance

Covers medical costs associated with an accident, and the costs for this is around $1 to $5 a day.

Personal effects coverage

Insuring whatever the customer keep in the rental car, and it costs around $1 to $4 a day.

Another important thing to note about rental car insurance, if you have full coverage insurance on your vehicle, but your rental is worth more than your vehicle, the full coverage may not cover the expenses associated for coverage with the rental car. For instance, if your car is worth $20,000 in which you have full coverage, but your rental car is worth $50,000, then your insurance coverage would not cover the loss and damages associated with the rental car.

The bottom line is that it all just depends if rental car insurance is needed or not. There are times when some rental car sales people would say things dishonestly to make sales and get promoted. Other than that, you won't need it due to your insurance and credit card company. And in some cases, it may benefit you in obtaining rental car insurance if you can work out a lower, daily rate in renting a car.