If you need to rent a vehicle, you’ll need to decide if you want to purchase rental car insurance coverage as well. About as many people decline the coverage as purchase it, and there is no clear-cut answer as to which decision is the correct one. So, here are some pros and cons associated with rental car insurance.
The Pros of Rental Car Insurance
Complete Rental Car Coverage – If you choose to purchase rental car insurance, you can rest assured that any damage to the vehicle while in your possession will be covered. This coverage is provided for accidents, scratches or any other type of damage to the vehicle while you have it.
Great for People Without Insurance – If you don’t own a vehicle, you probably don’t have a car insurance policy. So, rental car insurance is not only a good idea – it is essential.
Pays Regardless of Who Is at Fault – That rental car insurance will pay for damage to the rental car vehicle even if you’re not at fault. This will help you to avoid having to file a claim against the at fault driver’s car insurance company and potentially having to wait for the matter to be settled.
Pays for Everything if You’re At Fault – If you aren’t in an accident, and you are found to be at fault, rental car insurance will pay for damage to all vehicles as well as medical expenses.
Offers Collision Damage Waiver Protection – Your rental car insurance policy will also provide collision damage waiver protection which will pay the rental car agency for loss of use of the rental car while it is being repaired. Even though many personal car insurance policies cover rental cars as well—most do not pay the rental agency for loss of use on the vehicle.
The Cons of Rental Car Insurance
May Not be Required – If you have comprehensive collision car insurance, your current car insurance policy may already provide coverage for rental cars as well. If you’re personal car insurance policy offers rental car coverage, purchasing rental car insurance may simply be a waste of money and is not needed.
May Not Provide Adequate Protection for Injured Parties – In some cases, rental car insurance may not offer adequate policy limits that provide sufficient coverage to pay for major medical expenses for people injured in a car accident. If you purchase rental car insurance, and have no other car insurance available, you may be responsible for medical costs or damages that exceed the policy limits of the rental car insurance policy. Some states allow injured parties to file civil suit lawsuits against you if your car insurance policy cannot adequately pay for medical expenses or other costs incurred by the injured party.
Rental car insurance does offer valuable protection for people that rent cars and want to make sure that they are not personally liable for damages to the vehicle. However, before purchasing the rental car insurance policy, you should check with your own car insurance company and make sure that you need the policy or not. Also, you may want to check with your credit card company as many credit card companies provide car insurance rental car insurance as well if you pay for the rental with that particular credit card.