Did you know that your car insurance policy doesn’t always cover you in case of accident in a rental? Damages to a rental not covered by insurance can easily run into the thousands, and let’s not even think of the figures if there is another person involved. The savings you get from weeks worth of research might be wasted by just a single accident! Let’s take a moment to look at your insurance options when you rent a car.
The first, and best option, is to be automatically covered by your existing policy. Depending on your company, this might be included in your policy or available for a small surcharge. The easiest way to find out is to call your insurance agent to determine if you are covered in a rental, and if so if there are any restrictions. Insurance companies are picky in this regard, so it’s best to find out exactly when you are and aren’t covered. However, this will usually be the cheapest route.
Next up, check your credit card company. Some companies will either cover you outright or offer you insurance at a discounted rate - just don’t forget to actually pay with that credit card. This won’t work for you if you have a student Visa card, but if you’ve got an American Express Centurion stowed away, it’s worth a shot.
Now, if neither one of those applies to you, you can also purchase insurance directly from the agency. This will usually be the most expensive, however it’s still going to be less than the cost of a small accident. Is the cost worth it? Well, that really just depends on how good of a drive you are and where you’re planning on driving. To some, the peace of mind is worth it.
Finally, you could be a rebel and drive without insurance. Just remember, a small fender bender will cost you $500, a head on collision might cost you the cost of the whole car. Hope you’re feeling lucky.
Many people complain that insurance is a scam, but when things go wrong insurance is the first thing they turn to. It’s best to make sure your insurance needs are covered before traveling, that way you can drive assured knowing that you are protected.
