When a rental company employee asks if you want to accept rental car coverage, the correct answer depends on your personal situation. While some drivers believe it’s never a good idea to add insurance coverage and also you should definitely know how to handle it onto the price of a rental car, experts say there are some times when rental car coverage is a good idea. Understanding how the car insurances work and when to accept rental car coverage can help you avoid potential problems.
Why Decline Rental Car Coverage
- You’re already covered. Most insurance policies in the United States do provide coverage for rental cars. However, that assumes that your insurance policy has collision coverage. Accepting rental car insurance coverage can often add 50 to 100 percent to the cost of renting a car for a day.
- Credit card coverage. A number of credit cards offer automatic rental car coverage when you use the card to pay for the rental car. Make sure you understand the amount of the coverage offered by the credit card company. In many cases, it will be a bare-bones policy that won’t be sufficient to pay for a wreck that involves significant property and bodily damages.
Reasons to Accept Rental Car Coverage
- No deductible with car rental insurance. The insurance offered by most rental car companies does not come with a deductible. That means that if you cause a wreck, the rental company’s insurance will cover the claim and you won’t have to pay any money at all. If you cause a wreck driving your own vehicle, most insurance policies include a deductible that must be paid first before the insurance company takes over the rest of the claim.
- Protect your insurance rates. Any time you are in an accident as a result of your own negligence, there’s a good chance your insurance rates will increase. With a rental car policy, you can total the rental car and the cost of your car insurance won’t be affected at all. Read on to find the cheapest car insurances in US.
- Avoid driving scared. If you decide to accept rental car coverage, you will pay more money for the rental car. However, you’ve eliminated the risk that an at-fault accident can raise your car insurance rates.
- No collision coverage. It isn’t unusual for a driver to drop collision coverage from his or her car insurance policy when the vehicle gets older. That step can save a significant amount of money and makes sense when a driver is more like to replace a vehicle than pay for repairs in the event of an accident. If you do not have collision coverage on your own car, then you also don’t have collision coverage on any car you may rent.
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