If you've ever rented a car, you're familiar with the insurance upsell the agent will do before you leave the counter. Most of the time, the insurance packages alone cost more than what you're spending on a budget-friendly rental. Do you really want to drive without insurance though? If you don't opt in, what happens if you get into an accident? Read on to learn what you should know about rental car insurance.
The Agency's Insurance Package
It's no secret that agencies offer overpriced car rental insurance, but it does come with a benefit: if you get into an accident or the car is stolen, the agency will take care of it and you won't be charged a penny (assuming an unauthorized person wasn't behind the wheel). You can always offset the price of insurance by seeking out car rental discounts or using rental coupons.
Using Your Own Auto Insurance Policy
If you don't get the agency's insurance, that doesn't necessarily leave you uncovered. When you decline rental insurance, your own auto insurance usually takes effect (double-check this with your insurance agency ahead of time). If you are covered under your own insurance, buying the agency's insurance will only provide unnecessary duplicate coverage. However, there are still a few perks to opting in: you won't have to pay a deductible, file a claim, or suffer a raise in your own insurance premium.
Credit Card Rental Coverage
Many high-level credit cards (gold, platinum, and business) offer car rental insurance. There's a lot of fine print that comes with this coverage, though. Many credit cards only offer secondary insurance, which kicks in after your own auto insurance has been exhausted. Some credit cards require a deductible, and others won't cover certain vehicle types, like luxury vehicles or vans. Check if you need a credit card to rent and what coverage it provides.
When searching for rental deals, take into account the cost of insurance as well as the cost of an accident. A few dollars per day for coverage could save you thousands in the event of an incident.
Find rental agencies that offer competitive rates with transparent insurance options.