Understanding how rental car insurance works to protect you
Car rental insurance can be very expensive, especially if you are already spending quite a bit on a rental car while you are travelling. Because of the high rates that come with car rental insurance plans, you may be wondering if the insurance is actually necessary or worthwhile. You may even be tempted to simply rent the car itself and just do without the extra car insurance policy in order to save some extra money that you could utilise to pay for other fun activities you will partake in during your holiday away from home.
Below are some reasons why you should take out rental car insurance when you are applying for a rental car, as well as more information about how rental car insurance works in the first place to protect you, as the driver.
How You Are Covered
When you purchase car rental insurance, you are getting coverage in the event you are in an accident involving the rental car. The car insurance provider that the rental company utilises will simply step in, take your claim, and then handle all of the details in the same way that your regular car insurance plan would help you if you were ever involved in a car accident with the car that you own at home. Therefore, the added peace of mind that comes with purchasing rental car insurance may make it more than worth the extra daily fee you will need to pay, especially if you are driving in a new area that you have never been to before and you do not yet know what to expect as far as the behaviour of other drivers on the roads are concerned.
If you opt for the extra collision coverage as well, the insurer will also take care of replacing the rental car for the rental company without you needing to get involved in the process at all. A collision damage waiver can be worth every extra bit of money you spend on it because, in the event of an accident, it will guarantee that you will not be required to pay for any of the damages that the vehicle incurs.
When You Don’t Need Rental Car Insurance
If you have a very comprehensive car insurance policy of your own, you may not need to get a rental car insurance policy in addition to it. Check the fine print of your car insurance policy to determine if they also cover you while you are driving a rented vehicle. If they do, then there is absolutely no need to spend the extra money on rental car insurance.
If, however, you are going to be using your rental car with another driver who is not on your car insurance policy, then you need to make sure that their plan also covers them in the event that they are involved in a crash in a rented vehicle. If not, take out some extra car rental insurance to protect them just in case.
Peter Durrans is a expert in all things insurance related and often visits garethsquote.com to check out the latest tips and advice on car insurance.
- photograph – Karen V Bryan