What You Need To Know About Car Rental Insurance

When you rent a car you might notice that the rental car company will always offer extra insurance. This will usually include accident, incident (like windows), and extra coverage for your person in case of an accident while you are using their car. I would like to suggest that it could be a good idea, even if you already have insurance that covers you, to purchase extra insurance to protect yourself, and your pocketbook.

First of all, look at your personal automobile policy or get in touch with your insurance company to find out if you have automobile rental coverage in case you have an accident. As a matter of fact, it would be a good idea to include this on a checklist of what you need before you take a trip. Currently, a lot of insurance companies restrictions or special circumstances when it comes to renting automobiles. You need to make sure you buy extra coverage if your policy does not have complete coverage or enough coverage for a rental.

There are other important gaps in coverage that often occur to the detriment of the insured. For instance, if you drive an older car, you may not be carrying any collision coverage. Therefore when you rent, your coverage could be terribly inadequate. Also, if you have entered into a long-term lease or rental agreement, some states assume (in a legal sense) that you have temporary ownership. In the advent of a car rental accident, you could be left holding the bill.

Don't rely on your credit card for full accident coverage when you rent a car. You should have other forms of car insurance, because your credit card company will only reimburse you after all other insurance claims are processed. These payments are for collision only and there is no coverage for liability. So, You should check with your car insurance company to make sure you understand your coverage before you rent a car.

Again, even if your policy covers rentals it may be best to purchase the additional coverage given that rental company contracts have standard clauses indicating that there is no cap or limit on your liability resulting from use of a rental vehicle. You will be held responsible for damages to a rental car, including physical damages, loss of use, and diminution of value, as well as administration fees, regardless of fault, and there will be upper limits on the amount that your primary carrier will pay.

Rental agencies and primary insurers are continuously in negotiations and consumers can be caught in an undefined area or a contention may arise. Many states require the vehicle owner to provide primary insurance coverage through a carrier. The problem is there exists a separate set of statutes specific to rental cars and the standard laws do not apply. The insurance company will pay for repairs but not other charges such as medical expenses. The rental customer would then have to pay out of pocket large sums in certain cases. Case studies show that courts rulings have varied and there is no clear standard. In a nutshell, it is wise to buy extra insurance to cover any potential problems and ensure coverage.

Car rental accidents don't have to turn into monetary burdens that overwhelm a person. Of course, any agreement that you sign is going to have taxes, additional fees, and some additional costs, but that is normal for our modern market; also, the minor costs needed to get you some extra coverage for a rental vehicle are absolutely worth all the extra money you will spend on them.

Richard Edmunds worked as a manager of a big name Car Rental Agency for the past 20 years before retiring. He now spends his time writing car rental articles for you about such topics as Rental Car Insurance and other rental car tips