Car Rental Insurance
Car rental insurance is a controversial subject with many travelers. A great many travelers and frequent renters line up on either side of the question with some pretty good arguments.
Although there seems to be a pretty even split among experienced travelers on the question of car rental insurance, there is no thing both sides agree on completely. It is important to understand the limitations of your personal coverage. This is the area where most inexperienced renters err. They either buy coverage that duplicates what their personal policy already offers, or they drive off thinking they have coverage that is really not there.
Each individual policy has different rules on rental cars. Some will cover rentals that are not extended time or business related. Some will not cover rentals in foreign countries. You need to know what your own policy before making a decision on rental insurance. There are many people who accept rental company insurance even though their own personal insurance might cover rentals.
The main reason for this is that accidents in rental cars are more easily handled by the rental companies own insurance provider. In the case of private policies, the rental company usually wants payments in advance and it may be months before your own company reimburses you. Even then, the accident report and claim could result in an increase in your own premium. This is why some renters see the car rental insurance as a good deal and a one time charge for a hassle free safety net.
Other travelers insist that car rental insurance is overpriced. They compare it to the one time flight insurance policies that used to be sold in airports. They make a quick profit for the rental company without giving an equivalent value to the client who may even have protection as part of his credit card service. Frequent renters point to years of safe driving and the savings of thousands of dollars in excessive rental fees.
Liability, of course, is always a more important issue. While minor collision damage might be a mere annoyance expense, liability for an “at fault” accident can have catastrophic consequences. A complete understanding of your own protection from your personal insurance or the credit card company used to pay for the rental is mandatory from a liability point of view. You can not afford to be at risk at any time when it comes to liability.