Renting a car? Buying the over-the-counter insurance that rental car companies sell could be the costly than you think. Why? We’ll let’s take a look at renting a car whenever it’s necessary, but especially after a collision and you need transportation to get to work while your car is being repaired.
There is a lot to know about what kind of rental insurance we need–if any. We may never need to rent a vehicle but when you do, there is no time to research what you actually need. We simply rely on the rental agent and sign the rental agreement. This could be a big mistake!
You need to make a call to you agent and ask what type of coverage for rental cars you have included in your regular auto insurance.
Does your auto insurance provide rental coverage?
Should you purchase additional coverage?
Should I call the credit card company I will use to make the transaction?
Am I covered for all possible events?
If you don’t know, the rental car companies are able to take advantage of you. Before you leave home, contact your insurance provider and ask; Am I covered for damage, theft and loss of use? Liability for injury to others (personal and property) while in the rental car? Personal effects if stolen? You should know the answers to all of these questions or risk being stuck with the bill.
Peace of mind doesn’t come cheap. Hundreds of dollars maybe added to your weekly rental costs. You need to arm yourself with the knowledge to make the right decisions that will give you the best rental coverage that doesn’t duplicate what you already have through your auto insurance and credit card company.
If you don’t own a car but drive from time to time, you still need affordable car rental insurance. Non-owner liability coverage may provide liability protection when you rent or borrow a car while personal effects coverage can make sure your possessions are covered away from home.
Many rental car companies are becoming diligent in collecting loss-of-use fees and diminution-in-value or diminished value fees. These fees cover the cost of loss of value to the car because it’s been damaged. Rental agencies are claiming more diminished value fee, because vehicle history report services such as Carfax have made it more difficult to sell cars that have been damaged. Use a card that offers primary coverage if you have it, and how it handles loss-of-use, administrative and diminution-in-value fees.
Ask your agent if your personal auto insurance covers the cost for a rental car.
Ask your credit card company what coverages they offer.
Ask what it would cost to add a rental car rider to your policy.
If unsure about auto insurance and coverage, contact your agent or reach out to the Insurance Architects at Passarell Insuracne for a free, educational consult on your driving needs.