One of the big questions people have to answer when they purchase a new car insurance policy is whether or not they want coverage for rental cars. Every time you rent a car, you are offered a separate insurance policy for the length of the rental. Should you take it or should you include this coverage option in your auto policy? Here are some factors to consider.
1) Cost. It’s usually about $10 a day for the coverage offered by the rental car company. That’s about $3500 a year! This is an outrageous amount. Coverage through your personal car insurance is much less.
2) Coverage. There are many restrictions in what is covered and what is not covered in the policies that are offered by the rental car companies. For example, nobody but you is covered under the policy, you are not covered outside of a specific area, and if you are found to be driving carelessly, (even if you make a mistake), your claim could be denied.
3) Making a claim. If you do opt to carry coverage for rental vehicles on your policy, be aware that if you ever make a claim on this option, the insurance company will treat it like any other claim and your rates will increase for three years, on average. Also, if you already have accidents or tickets on your policy, making a claim on your auto policy could cause the insurance company to suspend or cancel your coverage. This is obviously not the case if you make a claim on the policy offered by the rental company.
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