Facts about car rental insurance
Whether renting a car for business or pleasure, the last thing anyone wants to have to worry about is paying for damage to a rental vehicle should it happen. For this reason, car insurance exists to cover drivers who operate a rental vehicle. Many people choose not to purchase car insurance because they feel it is an unnecessary expense. The truth is, without car insurance, a person could be responsible for much more money than the cost of car insurance would be if they suffered damage to a rental vehicle.
A common misconception among many people who rent a vehicle is that their personal auto insurance policy will also cover them for rental vehicles. This is not always the case. Some personal auto insurance plans will cover a driver when they rent a vehicle, but this is not the norm. A person should always refer to her insurance policy or speak with her insurance agent to help determine if rental cars are covered under her personal auto insurance policy. If the rental vehicles are not covered by the personal auto insurance policy, then it is the renter’s responsibility to obtain rental insurance.
Car insurance can be purchased directly from the rental company. Many rental companies offer different insurance coverage plans to meet the individual needs of the renter. The car rental insurance premium is calculated using a daily rate and in some cases a weekly rate if a person is planning a long rental period. The premium amount is added to the rental rates and is paid together. A renter would need to opt out and purchase auto rental insurance at the time of rental. It cannot be added at a later time. This alleviates the possibility of insurance fraud.
The purchase of auto insurance is not always necessary when renting a vehicle. Some of the major credit card companies offer cardholder benefits, like car rental insurance, just for being a member. To be eligible for auto rental insurance through a credit card company, that same card must be used to insure the rental. Not all credit card companies offer this benefit to their members. A person should always call and check with a credit card company agent to determine if he has this coverage and what the eligibility requirements are to take advantage of this benefit.
Despite the concerns of many people, car insurance is a sound investment. The cost of car rental insurance is a lot compared to the costs that a person would bear if they had to pay for the damage out of pocket. Car rental companies always offer car rental insurance as an option at the time of rental. Some people may qualify for coverage through their personal auto insurance or through their credit card company. They should always check with their insurance agent or credit card company to make sure they have coverage.