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Writer's pictureCharlotte Burr

To Buy or Not to Buy Rental Car Insurance

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Traveling is often stressful enough but determining whether car insurance for your rental is REALLY necessary is an issue you shouldn’t need to worry about. Often times the answer lies in the policy you’re already holding.

Most standard auto coverage plans will continue to protect you with bodily injury and property damage liability, comprehensive, and collision.  Most drivers have liability coverage so as long as you are happy with the current amount of coverage you have, you can usually pass on the rental company’s offer on supplemental liability.

Fewer people, may however own comprehensive and collision coverage, particularly if they own an older, high mileage vehicle.  If you do have comprehensive and collision, you may decide to decline the rental company’s loss damage waiver. It is important to note that rental companies may still charge you for loss of use if you damage one of their vehicles because they have lost money in not renting out the car during the time it was being repaired. If you decide to decline the loss damage waiver, verify with your insurance company to see if your plan also covers loss of use.

If you’re traveling for business rather than personal reasons, beware that your personal car insurance may not protect you unless your trip is a simple commute to a work related event.

In the chance that your personal belongings are stolen from a rental car, there is a high likelihood that your homeowners or renter’s insurance covers it. To this effect, it is usually safe to skip paying for the rental company’s personal effects coverage.

One benefit credit cards often offer is some level of rental car insurance. Give your credit card company a call to see what they’ll cover while you’re traveling.

Before making a final decision to buy or not to buy rental car insurance, just remember that filing a claim to cover a cost of an incident involving a rental car can lead to your policy premiums increasing in the future. Consider the benefits and risks to determine what the best option might be for you.

Safe travels!

Have questions? Give us a call!

AZ Insurance Team 480-535-5709 https://www.azinsuranceteam.com

*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.*

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