How Rental Car Insurance Works
Whenever you rent a car, you will almost certainly be offered rental car insurance by the rental car agency. Rental car insurance is designed to pay for damages to the rental car if you are in a car accident. In addition, most rental car insurance policies will pay for medical expenses as well.
How It Works
If you purchase rental car insurance from the rental car agency, the coverage will protect you in the event you're involved in a car accident. If you're in an accident, you simply need to call the rental car agency and report the accident. The rental car agency well start the process of submitting your claim and the rental car agency’s insurance company should handle the claim much in the same way as with any other car accident.
Most rental car insurance policies are charged by the day, and costs between $10 and $30 for every day that the vehicle is used. While the coverage is somewhat expensive, it generally does not require that you pay a deductible in the event of an accident, and also provides a Collision Damage Waiver which pays the rental car agency for loss of use for the rental vehicle.
You May Not Need It
Many comprehensive collision insurance policies also offer coverage for rental cars, and you may be able to save some money by declining the rental car coverage. However, you should be aware that most comprehensive collision policies do not cover the loss of the car’s use for the rental car agency, and those costs may need to be paid by you if you are found to be a fault in the accident.