You are about to rent a vehicle and the agent asks you if you want to purchase rental car insurance. Should you pay more? Is it worth it? These are common questions to ask before you decide to add an extra charge to your rental car bill.
Do you really need it? The short answer is yes.
Here are 5 reasons why you should purchase rental car insurance:
- Your personal auto insurance may not cover rental vehicles.
Before you rent a vehicle, review the terms of your own auto insurance to be certain that you have coverage for a rental car. While your policy may provide liability coverage for rental vehicles, you should check to see if it extends collision or comprehensive coverage to the rental vehicle. If it doesn’t, you need rental insurance to cover the cost of repairing any damage to the rental vehicle.
- You don’t own a car and don’t have auto insurance.
If you don’t own a car and rent a vehicle without purchasing rental insurance, you are in violation of Connecticut law if you operate the rental vehicle. Also, if you have an accident with personal injuries and property damage, you may be personally liable for the damages.
- Your auto insurance covers rental cars, but you have a high deductible.
A high deductible plan may not help cover most of the costs if you get into an accident. Review the rental car insurance plan to see if it provides better coverage.
- Your auto insurance does not cover certain vehicles, such as moving trucks.
Make sure you review your auto insurance policy carefully to see if they exclude coverage for moving trucks and other types of vehicles. If your policy doesn’t cover the type of vehicle you are renting, consider getting rental car insurance to cover the gap in coverage.
- You are traveling for business and your company does not have rental car insurance.
Here, your individual auto insurance policy won’t cover you if you are renting a vehicle for business purposes. This is why it is important to know what type of coverage you currently have and if it is adequate for your needs.
Getting rental car insurance may be unnecessary in some cases. But you need to review your existing coverage and the type of rental car you are getting before you make the decision to purchase additional rental car insurance or not. Failing to do so could result in significant expenses if you are involved in an accident.