Facts about car rental insurance

Whether it’s renting a car for business or pleasure, the last thing anyone wants to worry about is paying for damage to a rental vehicle should it occur. For this reason, there is auto insurance that covers drivers who operate a rental vehicle. Many people choose not to buy car insurance because they feel it is an unnecessary expense. The truth is, without auto insurance, a person could be liable for much more money than the cost of auto 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 cover them for rental vehicles as well. This is not always the case. Some personal auto insurance plans cover the driver when renting a vehicle, but this is not the norm. A person should always check their insurance policy or speak with their insurance agent to help determine if rental cars are covered by their personal auto insurance policy. If the rental vehicles are not covered by the personal auto insurance policy, the renter is responsible for obtaining rental insurance.

Auto insurance can be purchased directly from the rental company. Many rental companies offer different insurance coverage plans to meet the individual needs of the tenant. The car rental insurance premium is calculated using a daily rate and in some cases a weekly rate if a person is planning an extended rental period. The premium amount is added to the rental rates and is paid together. A tenant would have to choose and purchase car rental insurance at the time of rental. It cannot be added later. This alleviates the possibility of insurance fraud.

It is not always necessary to purchase auto insurance 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 car rental insurance through a credit card company, that same card must be used to guarantee the rental. Not all credit card companies offer this benefit to their members. A person should always call and consult with an agent from their credit card company to determine if they have this coverage and what the eligibility requirements are to take advantage of this benefit.

Despite the concerns of many people, car insurance is a solid investment. The cost of car rental insurance is far in comparison to the costs a person would bear if they had to pay for damages 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 credit card company. They should always check with their insurance agent or credit card company to make sure they have coverage.