Do You Need Rental Car Insurance while on Vacation?

English: Rental Car Center - George Bush Inter...

English: Rental Car Center – George Bush Intercontinental Airport Español: Centro de Renta Automoviles – Aeropuerto Intercontinental George Bush (Photo credit: Wikipedia)

One thing many of the rental car companies push when a renter comes to pick up their rental car is the purchase of the rental car insurance for the duration of the rental.  The average cost per day for this insurance is $10.  But do you really need this insurance?  The rental car company will attempt to scare you into “needing” to purchase the insurance by asking you if you financially would be able to cover the charges if you had an accident, etc.To be sure that you have coverage without the extra cost, be sure to call you insurance agent before your date of travel.  You may find that your current policy on your vehicle includes car insurance for rental cars at no extra charge.   Therefore, if you purchase the insurance being sold by the rental car company, you are paying for extra insurance you may not even need.

If you find that you do not have coverage with your current insurance policy, ask your credit card company if they offer free insurance when using their card to pay for the rental.  Or if you are traveling for business purposes, inquire with the human resource department to see if your company’s employer’s insurance already provides the rental car coverage.

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