Which Insurance Coverage is Necessary for a Rental Car?

Insurance offered by rental car dealers may not be everything you need. Before renting a car, find out which insurance coverage is needed before committing to added expense. Checking your existing insurance policy and credit card insurance provisions may fill the necessary insurance needs on a rental car. The collision insurance waiver may not need adding if alternative insurance supplied by another source is in place.

Credit Card and Personal Car Insurance Coverage

If you have collision on your existing insurance policy, find out if this policy has a rider for rental cars. If it covers the rental car you will not more insurances expenses. The credit card that you use to rent the car may provide coverage in case of an accident; this again may be subject to limitations. Check with your credit card company to discuss the type of coverage they supply for a rental card.

Maybe You Need to Buy Collision Insurance

If you rent a car and not sure if your policy or credit card company supplies or covers this type of insurance, you make find it better to pay the low fee for insurance to be save. The cost of an accident to replace the car could run into the thousands and the fee is under a hundred most of the time. The insurance policy covers damage to the vehicle and loss of use due to an accident. This insurance only covers collision and not personal property or injury.

Highlights of Collision Damage Insurance

The coverage plan covers up to thirty-five thousand dollars with a two hundred and fifty dollar deductible. The insurance only works with business trips or vacations not renting of a car for local use. If you buy from the rental company and they pay out, your policy for your personal insurance policy does not become affected. If you plan to have more than one driver, you need to put the name of that person on the application as well for the insurance to remain in affect if that person has the accident. If the person driving omits his or her name from entering on the application, may make the insurance policy null and void. Take all precautions when renting a car and adding the collision insurance to the agreement.