The Insurance Information Institute recently published an article on Rental Car Insurance and we thought we’d sum it up for you.
As you know, insuring a rental car can be confusing and many consumers do not even think about whether or not to purchase the rental car insurance until they get to the counter – this can result in costly mistakes (either by purchasing unnecessary coverage or having gaps in coverage).
There are two places to look before deciding on coverage – your insurance company and your credit card company.
Insurance Company – find out how much auto insurance you have on your own car. In most cases, your coverage and deductibles on your auto insurance would apply when you rent a car (given you are not using the car for business). If you don’t have collision or comprehensive coverage on your car, you will not be covered should your rental car be stolen or damaged in an accident.
Credit Car Company: Insurance benefits from a credit card company vary greatly by company and card. Many credit cards cover damage to or loss of the rented vehicle, but does not cover for other cars, personal belongings or the property of others. To be certain what your card covers, call them and inquire.
For more information, check out this article: http://www2.iii.org/articles/do-i-need-separate-rental-car-insurance.html