Do You Really Need Rental Car Insurance?

This beautiful spring weather has us thinking about all things vacation. Where to go, what to do, whether or not to rent a vehicle. All of that discussion leads into a question our agents frequently get asked “Do I need to purchase additional insurance on a car I’m renting?” To help give you some more information before making your decisions here are a couple of things to think about in regards to rental vehicle insurance.

While your personal auto coverage carries over to the rental car, there are some items in the fine print of the rental contract that you should pay attention to. Most rental contracts have what is called “loss of use” this means that if the car becomes damaged and un-drivable while you are renting it the rental company can charge you for every day the car cannot be rented out. This can add up in a big way very quickly.

While you are on vacation you most likely have personal belongings in the vehicle; IPad, laptop, camera, etc. What happens if the car gets broken into and your belongings are stolen? If you have homeowners or renters insurance you can file a claim and have these things replaced; however, it will be subject to the deductible (likely at least $1,000). Not to mention, you’ll have a homeowner’s claim following you.

Ultimately the final decision is up to you, just be sure to educate yourself, ask questions, and weigh out the pros and cons of taking out the rental company’s insurance. The extra insurance may just be worth it for the peace of mind so that you can truly enjoy your vacation.

For additional information check out this article How to Know Which Insurance to Take on a Rental Car.

**Auto and homeowner insurance vary from person to person and you should check with your agent to discuss your own personal coverages.


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