Rental cars – sometimes you need them. There are many times when you may need to rent a car; if yours is in the shop, an accident left your car totaled and you are searching to buy a new car or used truck, or you are on a trip. So, when you go to get your rental car, what do you do when asked if you want rental insurance? Do you take it or leave it?

When To Buy Rental Insurance

If you only have minimum coverage on your vehicle, or don't have renters or homeowners insurance, you may be interested in purchasing some additional coverage through the rental company. Also, it may be cheaper for you to use the rental insurance if your regular policy has a high deductible. Furthermore, using the rental coverage means that you will not run the risk of your regular premium being increased should you have an accident. In these cases, that $10 to $20 extra per day may be beneficial to you for a vehicle you will only have temporarily.

What about my personal belongings? Rental companies also offer this type of coverage, but if you already have a homeowners or renters insurance policy, your belongings are covered under that.

When to Use Your Own Vehicle Insurance Policy

Most comprehensive auto insurance policies will cover your rental the same as your own vehicle. Additionally, you can check with your credit card company to see if they provide any sort of insurance coverage with rental purchases. Most times, the credit card companies will only cover damage done to your vehicle. If your incident involved a collision with another driver, you might end up having to pay for their damages.

When possible – as in events where you know you will be renting a vehicle, it is always best to speak to your insurance agent and credit card company beforehand to find out what they would cover in the event of damage to a rental. At the end of the day, you are the one making the choice. Do you need that additional coverage, or are you already covered? It's always better when you have that peace of mind. We here at Auto Credit Express want you to have that.