You’ve just landed at your beautiful vacation spot and would like to rent a car for the time you are there. The rental car shop offers you insurance for the vehicle you are about to rent.
Should you take it?
You call your CRG agent and they give you the pros and cons of taking the rental car insurance coverage. Let’s take a look at both sides more in-depth.
Private passenger only
First off, your insurance policy will cover you for a private passenger vehicle that you rent on vacation (does not include any vehicle designated for commercial use, ex: box trucks, dump trucks, etc.).
But, to be clear, whatever coverage you have is what is included with the rental car. If you have full coverage on your car, then full coverage is included with your rental. If you have liability only, you only have liability coverage on your car.
Taking the coverage
Here are the reasons you WOULD purchase the rental car insurance:
- No Comprehensive/Collision Coverage on Your Insurance Policy: If you only have liability coverage on your vehicle, or liability and comprehensive coverage, it is worth purchasing the rental car insurance. If you do not, in this situation, you would pay out of pocket for a comprehensive/collision claim to the rental while in your possession.
- Traveling Out of the Country (Besides Canada): For those of you who do not know, your insurance policy will only cover you inside the US and Canada in most cases. So, if you are traveling abroad you should purchase the rental car coverage.
- Avoid Getting Your Insurance Company Involved: If you take the rental car insurance and get into an accident, your insurance company would not be involved. The rental car insurance would handle the claim and would prevent any immediate rate increases on your policy due to you filing a claim. If the police are called, chances are your carrier would eventually find out about the accident.
- Make Turning in the Car Quick and Easy: If you did not take the rental insurance and a claim situation were to arise while you were renting the car, the rental car company may require you to stay until they get in contact with a claims adjuster from your carrier. If you purchased the insurance, you would turn in the keys and be on your way.
- To Avoid Paying for Diminished Value/Loss of Use: If you have an accident without the rental car company’s insurance, they may charge you for the loss of income while the car is being repaired or the diminished value of the car. It is a good idea to make sure that either your credit card* or your insurance policy picks up this cost before you pass on this coverage. Be sure to contact your insurance agent and your credit card company.
Don’t take rental coverage
Here are the reasons you WOULD NOT purchase the rental car insurance:
- Duplicate Coverage: If you have full coverage and are comfortable with your insurance carrier handling any claim that would arise, you do not need to purchase the rental car coverage.
- Pricey: You would most likely pay a rate per day you rent the car. In some cases, this can be a pretty steep price.
*It may shock you, but your credit card may pay for some out of pocket rental car expenses. This could include your deductible or diminished value/loss of use. To trigger this coverage, you will most likely need to use the card to pay for the rental. Each card is unique, so in order to know what rental expenses your card can cover, call the number on the back of your card.
Whether or not to purchase coverage is a very common question for an insurance agent. If you are unsure of the answer, your insurance agent can give you their recommendation unique to your situation.
A quick conversation with your CRG agent is all it takes to have peace of mind on your vacation. You can relax knowing your agent is looking out for you no matter if you are in or out of the country.