Rental cars have become a staple of the great American vacation. But, rental cars come with the question, “Do I purchase the extra insurance coverage or take my chances?”
In general, your individual auto policy will cover you when you drive a rental car. But always check with your insurance company before you pick up your rental car to be sure.
It’s a good idea to understand rental car insurance products before you pick up your car. Most companies offer these coverage options:
If you decide not to purchase the extra coverage from the rental company, there are a few things you should be aware of:
Renting a car outside the U.S. brings its own challenges. Fewer insurance companies cover their customers who rent cars internationally, so, again, contact your company to find out your policy provisions.
More people opt to buy the extra coverage when traveling abroad because of the increased risk of accidents due to different driving conditions and traffic laws. The additional coverage will also help you avoid the hassle of filing a claim in a foreign country.
The bottom line here is to make sure you don’t pay for more than you need, but don’t take unnecessary risks to save a buck either. You don’t want to have to pay thousands of dollars for this summer’s rental car if it’s damaged or stolen—just because you didn’t spring for the extra coverage!
If you need to update your auto insurance policy, Dave recommends insurance Endorsed Local Providers (ELPs) who can save you money on car insurance and get you better coverage. Contact your insurance ELP to save money today!
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