Car Rental Insurance—Do You Need It?

Well, do you?

It is a dilemma thousands of travelers face every day.

Some people dismiss it out of hand—they don’t want anything that’s going to cost more money. Others feel trapped, like a rabbit in the headlights, not knowing which way to jump. Many people mull it over, ultimately deciding they should probably get it. After all, it’s better to be safe than sorry.

But insurance can add significant dollars to a rental fee, and what if you don’t need it?

If you own a car, you have auto insurance. And if you have comprehensive auto insurance, you should be covered if your rental car is involved in an accident—even if the accident is caused by you.

Similarly, if the car you are renting is damaged by a third party and you have comprehensive auto insurance for your own car, you should be covered.

What if you are involved in an accident and someone suffers an injury? Again, if you have comprehensive insurance, you should be covered.

And if the car is stolen, or items are stolen from it? if the car is stolen your own auto insurance should cover your loss, and if your auto insurance does not cover the theft of personal belongings from the car, then your home insurance may.

So, if you have your own auto insurance, and you are hiring a car within the United States, you should not need the additional cover offered by the rental company.

There are some circumstances in which you may need additional coverage:

• You do not have your own auto insurance.
• You rent cars regularly and often.
• You are renting a car outside of the United States.
• You are renting a removal truck.
• You are renting a car for business travel.

In all of these circumstances talk to an insurance broker before you travel.

If you have no auto insurance but do have home insurance, talk to your home-insurance agent. They may be able to offer you non-owner car insurance at a rate significantly more affordable than that offered by the car rental company. Even if you don’t have home insurance, you can get non-owner auto insurance either as an annual, multiple-trips policy, or as a one-off policy.

If you are renting a car for business, find out what coverage your employer already has, and what, if anything, they need you to add to that

If you are renting outside of the United States, talk to your auto-insurance agent to see if you need additional cover—you may not, but if you do, it will almost certainly be less expensive to add it to your existing policy than to take the car-rental company insurance.

If you are securing your rental car reservation with a credit card, talk to the credit card company—often they will include car-rental insurance in their terms, but may well refuse cover if you take additional insurance through the rental car company.

As with most things in life, being prepared will save you anxious moments and money! If you’re renting a car, have made the reservation already, or are just daydreaming about the next vacation, talk to your insurance broker or agent and get the answers ahead of time.

For more information on top rated auto insurance coverage in New Jersey contact Vozza Agency.