Is Rental Car Insurance Necessary?
A confounding situation that many of us end up in is when we’re renting a car and are asked whether we want to purchase insurance. It’s usually after the person behind the desk put their persuasive skills into action and ensure we all end up feeling like it is compulsory. What many of us don’t know is that our auto insurance in Hudson, NY may already be providing us ample coverage. So, do you need rental car insurance or not?
When you rent a car and are offered the chance to add on some insurance, there are typically four kinds of coverage to consider:
- A loss-damage waiver or collision-damage waiver: If you’re in an accident in a rental car or it is stolen, the rental company will waive your responsibility to pay for damages and replacement.
- Liability insurance: This coverage offers protection from any lawsuits that might arise from any incidents occurring during your rental period.
- Personal accident insurance: This is designed to pay for medical costs you (and any passengers) might incur in an accident while renting the car.
- Personal effects coverage: This insures your belongings that are with you in your rented car.
Before you take out rental car insurance, here’s what to consider first:
- Check your auto policy first. Typically, your auto policy will extend to a rental vehicle in Canada, the United States, and its territories. Be mindful that if you don’t have certain coverage on your own personal policy, for example, comprehensive coverage, then this will not be extended to a rental. It is possible to purchase additional collision coverage for rental cars through your personal or business insurance, so it’s important to talk to your insurance agent if it’s something you think you may need.
- Your credit card may provide an insurance policy. Many major credit card companies, if used to pay for the car rental, provide coverage to the cardholder at no additional cost. Be sure to double check this before you assume your card offers this.
- Consider your destination. Auto policies generally don’t extend to vehicles outside of the U.S. or Canada. If you are planning to rent a car during your vacation abroad, it’s important to read the fine print and secure coverage.
Skip the search of looking for the right car insurance by contacting Lofgren Agency directly. We can help you find optimum coverage for your vehicle at the right price.