How To Make Sure That Your Rental Car Is Insured?

Answer 1

Renting a car can be a great way to get around when you are traveling. The problem is that insurance is not included in most rentals. Worse, there is a confusing patchwork of rules and regulations that can lead people to believe they are insured when they are not.

When you rent a car, you will always be asked if you want to purchase insurance from the rental car company. These policies are sometimes given a hard sell as they are very profitable. Predictably, their coverage is extremely over-priced. For example, if the rental car company is offering its coverage for $15 a day, that is the equivalent of $5,475 a year, several times what a typical car insurance policy would cost.

The best way to avoid this is to use a major credit card that offers rental car insurance. This is a bargain, however you have to be careful to understand comply with the terms of that policy as well. For example, many policies offered through credit cards restrict the types of vehicles that are covered. These restrictions can include many common vehicles that are considered sports cars or off road vehicles. Most credit cards exclude many foreign countries that are popular tourist destinations such as Ireland, Italy, Israel, and Jamaica. All policies exclude coverage any time the vehicle is used in conditions not permitted by the rental card company's agreement. These agreements typically forbid use of the car on unpaved surfaces, so you will not be covered if you have an accident on a dirt or gravel road.

Another problem with your credit card's automobile rental insurance is that it is only valid if you decline the rental car company's insurance and if you pay for the entire amount with your credit card. That means that you must make sure to prominently decline coverage on the rental contract. Critically, you are not insured if you use a voucher for a free rental car, even if you use your credit card to make a deposit and to pay for taxes and fees.

Making sure your rental car is insured is an important, but overlooked aspect of being a prudent traveler. By avoiding these common rental car insurance pitfalls, you can be sure that you will have coverage in the event that anything should happen to your rented vehicle when you are traveling.