How does insurance work with rental cars?
Updated: Aug 4, 2020
Traveling can be a very exciting time whether its for work or personal pleasure. If you need to rent a car you have the option of paying for rental insurance through the company which usually costs around $15 a day. If you are using it for 7 days that's and extra $105 that you are adding to your traveling expenses. There are many ways to avoid this extra expense with a simple phone call before you leave to your destination.
Is rental car insurance worth it?
Car rental insurance coverage always a good idea to have because it will cover any collision damage, and it will cover if the car is stolen or vandalized. With this coverage the rental car company will not pursue you for repairs and losses. What you may not know is that a lot of people are already covered through their insurance policy or it is very cheap to add coverage for the time that you are traveling.
Does your insurance cover rental cars?
Generally coverage from your primary insurance will extend to your rental car. If you cause an accident in the rental car your liability coverage from your insurance policy will cover damage to other cars or property. Collision coverage on your regular policy will also cover any accident related damages to the rental car you are driving. In addition your comprehensive coverage would take care of damages to the vehicle not related to an accident. If you already have collision and comprehensive insurance coverage you may still want to purchase additional renters insurance because in the case of an accident, assuming the rental car needs work done, the company will charge you for every day that they can not utilize that car.
Check with your credit card company
Many credit card companies have benefits that include rental car insurance. They will cover damages to the vehicle and the valid loss of use charges that are applied when the car is getting repaired. It is important to call and ask you credit card company about these benefits before you make the decision to not get separate coverage yourself.
AZ Insurance Team 480-535-5709
*All policies are a little different and this may not be applicable to your insurance policy, talk to your agent to see what your policy covers.*