When you rent a car, you will most likely be required to purchase rental car insurance. However, not all rental companies offer this service, in fact, many car rental companies doesn’t even include a spare tire (I have a full post about this, read it here). If your company doesn’t provide it, you’ll need to buy the insurance from another source before driving off with their vehicle. Why should you bother? The best solution is to buy Rental Car Insurance before you rent any car. Because here are six reasons why you invest in rental car insurance.
- Your auto insurance does not cover “loss of use”
Loss of use coverage is a valuable benefit that can help you replace your income while your car is being repaired. But this coverage does not apply to rental cars, according to the Insurance Information Institute (III). This means if something happens and you need to get a rental car during the time it takes for repairs on your vehicle, there will be no protection against loss of income because auto insurance policies typically exclude “loss of use” from rentals.”
- Insurance provided by your credit card may not cover enough
Many credit card companies will only provide secondary coverage, meaning if you have any other insurance, that might take priority. Secondary providers may also not offer the same protection as primary insurers like Allianz Worldwide Partners or American Express Travel Insurance Services.
- You will have to pay your auto insurance deductible
If you are in an accident with a rental car, your auto insurance company will not pay for it. You could have a hefty bill to cover upfront before receiving any compensation from the other driver’s insurer. In most cases, this deductible is at least $500, which can be more than half of what you had planned on spending on your rental vehicle during its time in your possession.
- Rental car insurance saves you from auto insurance rate hikes
Some people think that if they buy rental car insurance, their auto insurance rate will go up. This is not true! In fact, in some cases, you may be eligible for a discount on your auto insurance rates when you purchase Rental Car Insurance. If you have a clean driving history, which is typically the case for renters, your rate will not go up. It can even go down and be cheaper than what you currently pay!
- International travel is often excluded from personal auto insurance
International travel is often excluded from personal auto insurance. This could lead to an expensive repair bill and void your rental agreement, which means that you should buy the Rental Car Insurance! The policy covers everything like theft of belongings in the vehicle, collision with another driver also renting their vehicle.
- Business travelers are not covered by personal auto insurance
If you own a car, your auto insurance will cover any damages to that vehicle. However, if you are driving a rental car and the company or individual renting it to you does not have coverage for damage incurred. At the same time, on their property, then there’s no protection for your liability in case of an accident.
The Bottom Line
We’ve all been there at some point in our lives. You are out traveling, and suddenly your car breaks down, or you get into an accident without insurance coverage on the rental car. Then what? This will likely cost a lot of money for repairs – not to mention replacement fees if the repair was too costly! The best solution is to buy Rental Car Insurance before you rent any vehicle.