The question of whether or not to take out rental car insurance when renting a vehicle is controversial. The car rental company may insist that you do so, citing legal obligations, while friends or family may tell you that it is unnecessary or even a scam. With so many conflicting voices, it can be difficult to make a confident decision. However, once you understand why you need rental car insurance, how to get it, and how it will cover you, you will be ready to make that informed decision on your own.
When renting a vehicle, always read it carefully before you own it and before you hand it in. Take photos of the car both times. There may already be dents or dents that you do not wish to be held responsible for. It could also be damaged before they inspect it after dropping it off.
When renting a vehicle, always read it carefully before you own it and before you hand it in. Take photos of the car both times. There may already be dents or dents that you do not wish to be held responsible for. It could also be damaged before they inspect it after dropping it off.
Do you need rental car insurance?
Yes, although you may already be covered.
If something happens to your rental car, you could end up paying infinitely more out of pocket than it could cost you to buy insurance for a small amount. Here are some of the ways you can get in hot water without purchasing insurance:
Damage to the rental car. Even if you are the safest driver in the world, you can still get into an accident. In addition, having a safe driver will not prevent other people sharing the road with you and your rental car from preventing doorbells and major dents on your rental car. Should damage to the rental car occur while it is in your possession, you will be responsible for repair or replacement. Depending on the type of vehicle you rent, you can spend over tens of thousands of dollars or more, and if you don’t have insurance for the car, you’ll have to pay for everything out of pocket. If you have car insurance, speak to your agent to see if your car insurance extends coverage to the rental. If you have a fully comprehensive vehicle, the rental car is usually also insured. Your collision deductible would apply if insured.
If you have car insurance, speak to your agent to see if your car insurance covers the rental. If you have a vehicle with fully comprehensive insurance, the rental car is usually also insured. Your collision deductible would apply if insured.
Loss of benefit. In addition to the cost of repairing or replacing the vehicle itself, the car rental company will also charge you for the loss of use for the entire time that you cannot rent the car. You will have to keep paying to rent the car until the vehicle is returned in perfect condition or a brand new one is replaced. In addition to repairing the vehicle, your insurance company can pay for a reasonable loss of use. You should speak to your agent or carrier before renting a car to confirm this. In addition to repairing the vehicle, your insurance company can pay for a reasonable loss of use. You should speak to your agent or carrier before renting a car to confirm this.
Liability. The cost of damage to the rental car plus loss of use (combined) pales in comparison to possible damage from a liability claim. If you run into other vehicles or people while driving a rental car and you are at fault, you will be liable for their injuries and damage. The medical cost of a major accident can easily run into hundreds of thousands of dollars. Inquire with your broker about your liability insurance. You should make sure this extends to your rental. Inquire with your broker about your liability insurance. Make sure this extends to your rental.
Ways to insure a rental car
The best way to avoid these heartbreaking issues is to make sure you always have rental vehicle coverage, and there are several ways you can do it:
Your personal insurance policy. Depending on your insurance carrier, you may be able to insure your rental vehicle without making any changes to your policy. Most insurance companies extend liability coverage from your personal policy to your rental car, and many also transfer coverage for physical damage as long as you already have it on another vehicle in the policy. However, your personal insurance policy is unlikely to cover the loss of use. It is important to check with your insurance company or insurance agent to find out what your policy covers when it comes to rental vehicles.
Insurance through your credit card. Some common credit cards extend insurance coverage to every vehicle rented with this card without incurring any costs. Not every credit card company does this, however, and the liability limits can be significantly lower than with standard insurance. Before making a decision, check with your card provider again for the specific terms and conditions.
Insurance through the car rental company. The easiest way to ensure the rental vehicle is insured is to purchase it through the rental company for an additional daily fee. The insurance offered by the landlord offers loss of use insurance and can also provide additional coverage for things that standard insurance would not offer. On the downside, insurance taken out through the rental company requires an additional fee, while you may not have to pay it if you rely on your personal insurance policy or balance. As the specifics of rental car insurance can also vary, check with the rental company for details when considering this option.
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Next time you rent a car
The costs associated with a rental car accident can be astronomical. Fortunately, you now know exactly what to say the next time the landlord asks if you would like additional insurance. Your answer? If the answer is not a resounding “YES!”, You may not be quick to turn down additional insurance from the rental company.
source https://collegeeducationnewsllc.com/best-rental-car-insurance-for-2021-benzinga/
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