There may be times that you will need to rent a car. There are of course many reasons for doing so. You may not have a car, your car may be in the workshop or perhaps you are in a different province or even a different country.
Car rental insurance can be tricky. Some people take a chance by not getting it and everything is fine. Others do this too, but Lady Luck isn’t so kind and they end up paying hundreds, possibly thousands just because they wanted to save on it. Here are some things you need to know about car rental insurance to help you make a wise decision.
1. Getting Off The Plane
After you get off a plane and go to rent a car, you may be asked if you want to get insurance. Remember, the person asking you is not actually an insurance agent. They will most likely not have a clue. Besides, it is quite likely (but make sure) that your personal auto policy offers coverage for these situations. You may also be told that you have to buy it, which is not really true, so don’t be muscled into it.
2. If You’re Covered, Don’t Get It
Now, you need to be pretty sure on this, otherwise make sure to check your documents and make a phone call before you leave on your vacation. If you happen to have comprehensive coverage with the insurance on your own car, including for collision, then you would not need to purchase the rental car insurance, despite what they tell you at the front desk. However, you must not be renting it for business purposes. If, however, there is business involved, you had better check with your broker to make doubly sure.
3. If You Have No Coverage
If you do not have any collision and comprehensive coverage (for your own car), you have several options. Many people do not have this coverage especially if their car is old. One option is of course, to take a risk and hope for the best! Just remember, if something happens, your personal auto policy will not cover damages to the rental vehicle. Taking a risk will also make you tense and stressed.
If you are not one to take such risks, then you could get the Collision Damage Waiver or the Loss Damage Waiver. Some rental companies will give you options, so you may need to see what works best for you.
4. Damage To Another Car
If you damage another car while driving the rental car, and if there are injuries involved, then your own policy will cover this, according to the policy. If you are contented with your own policy’s liability coverage, then you may not want to get additional liability coverage from the rental agency. However, if you don’t have your own auto insurance, then find out what the limit covered is.
Ultimately, it all comes down to whether you take risks, whether you can afford it and several other factors that can sway your decision one way or another. If you are unsure, speak with your broker for the best advice, but even then, it really comes down to you and your situation.
