Who does not like making money? There are schemes often made just to cheat the user out of a few good bucks. So is buying rental car insurance something you should avoid? Rental agencies are always on the look out to sell insurance polices to their customers. They have a whole range of them in place to lure the customer. There is no denying that each of these plans might be handy in some situation or the other. Each plan must be reviewed thoroughly on the basis of its exclusions, provisions and limitations before finally settling on one. Talk to an agent and get the complete information rather than making to with the summary on the company website, before you actually settle on one particular plan.
So you might be in the confusion that if you have your traditional auto insurance, do you need the extra rental insurance? Actually even when you rent a car the liability coverage limits you have for your auto insurance apply even here within the same limits, of course. For the same deductibles the comprehensive and collision coverage that is in place for your regular auto insurance coverage also applies for rental cars. However, make sure that you do have comprehensive and collision coverage before you go zooming off in your rental car, without a care in the world.
Your credit card will also carry some kind of auto insurance. It is best to get a clear picture of what exactly it covers rather than be vague about it. There are some cards which offer insurance only when one rents cars from one particular rental agency. In some cases the time period for coverage is limited, i.e. it is applicable to only some days. In some other cases the insurance will depend on the make, model and class of the car. As in, the insurance is only applicable in some cases. Then again sometimes the coverage is not automatic and requires you join in a particular program for the coverage to start. Some credit cards that claim automatic rental auto insurance coverage only pay for the comprehensive and collision damages and not for the personal injury or the loss of property charges to others scenarios. The Loss Damage Waiver, i.e. the LDW is not exactly insurance, but is only a word from the company that the customer will not be held liable in the case and scenario of any damages.
Hence before you rent a car, keep your eyes open for the charges you might be responsible for in case things go wrong. And also keep yourself informed as to how these charges are taken care of by firstly your auto insurance policy and the car insurance the rental company is offering you. IF you suffer a loss or damages that is not covered under your auto insurance policy, then check for possible coverage under other insurance policies such as renters’ policy or your medical policy.
Know your auto insurance policy inside out to take the highest possible advantage of it because remember information is wealth.