How Can I Save on Rental Car Insurance?
Even if you never plan on needing a rental car, chance are likely that you will need to have one at some point. You may be without transportation while your own car is being fixed or you may decide that you would like to rent a car for a cross-country trip rather than put the miles on your own vehicle. Regardless of the reason for renting, you also need to make sure that you have insurance on your temporary vehicle. Many people have made the mistake of assuming this was already something they received through their auto insurance, only to find out after an accident or ticket that the coverage was either non-existent or inadequate.
Why Car Rental Insurance is needed
Although you may have some car rental insurance through your automobile insurance policy, it may not be enough. Unfortunately, studies have shown that up to 30 percent of rental vehicles are subject to recall due to mechanical malfunctions, but there is no law which requires the rental car company to bring the car in for maintenance if a recall notice is received. This leaves a higher than usual percentage of rental cars being driven that are under insured due to their likelihood of defect.
Whether fair or not, you could be held liable for the costs associated with a rental car accident even if it is not your fault. If the rental car is discovered to have mechanical defects, all or part of the responsibility of paying damages to the other party could fall on you.
Before you sign an agreement for a rental car, check your policy and make sure you know what the deductible is if you do have rental car insurance coverage. Deductibles do tend to be high, giving you yet another reason to consider purchasing supplemental rental car insurance.
What Type of Rental Car Insurance Do You Need?
When you go to pick up your rental car, the agent should provide you with information about three different types of rental insurance and ask if you would like to include them in your rental agreement.
With liability insurance, you have the option to purchase additional coverage by the day that will cover damages that you standard auto insurance policy does not cover. This will protect you in the event that you cause damage to property or injure another person.
If you are using a rental car for vacation, you may have several items of value, such as cameras and computers that you need to leave in the car periodically. Personal effects coverage will pay a replacement fee for any personal items that are lost or stolen while the rental car is in your possession.
In the worst-case scenario where another person is killed as the result of a collision with you, an accidental death policy on your rental insurance contract will pay up to $100,000 to the deceased’s survivors or up to $2,500 for medical costs. Since amounts vary widely by state, make sure you are aware of your own state’s limitations before purchasing this option.
Where to Find the Best Car Insurance Deals
As soon as you find out that you will need a rental car, there are several place you can check to help you find the best coverage at a price that you can afford.
If you have a major credit card, call or check its website to see if the company offers rental car insurance to its customers. Since credit cards are used a lot while traveling, many credit card companies do offer a small rental car insurance policy as a service to its card holders. However, the policy may be inadequate to cover all of your rental car insurance needs, so make sure that you understand it before agreeing to it.
Your own car insurance company is another excellent resource to find rental car insurance. Find out what your current policy provides and then determine if you need to purchase additional coverage to be fully covered while you are driving a rented vehicle.
Most car rental companies have websites where you can do some comparison shopping for both car and rental insurance before committing to a purchase of either one. If you have located a rental car online, find out how much insurance is available with it and exactly what it covers.
How to Compare Rates
There are insurance comparison websites where you can enter the type of policy you are looking for and then compare the rates of several companies side by side. You will need to have detailed information about the rental car and how you will be using it when you shop for insurance. Before you start the process, make sure you know how long you will need the car, your starting location and the size, make and model of the vehicle you are interested in renting.
After you have received several quotes, make sure you read them carefully and understand any exclusions before accepting the policy. Some rental car insurance companies only cover damage that occurred in specified states, so if you are taking the car across state lines, be certain you know the limits of the policy.
The Benefit of Having Rental Car Insurance
It can be stressful enough dealing with having a different vehicle without having to worry about what would happen in the event of an accident. When you purchase rental car insurance, you will have the peace of mind of knowing that you won’t be left with unplanned expenses.