When renting a car, is purchasing additional insurance worth the extra money, or is it just a cash grab on the part of the rental companies?
If you own a vehicle and it's insured, there's a good chance you don't need to spring for rental insurance. Similarly, many credit cards also cover rental cars.
There are exceptions, of course. If you have a very basic insurance plan without collision coverage, you likely won't be covered in the event of an accident. You also may not be covered if your car is significantly older than the rental car, since the amount of coverage you have may not be enough to cover damage to a newer rental.
Even if you are covered, you may have to pay your usual deductible in the case of an accident. If your credit card covers you, you may have to cover any gaps between the limits of coverage and the cost of the damage. You will need to check with your credit-card issuer to find out what coverage you may have.
If you don't have collision coverage, or any auto insurance at all, or if your credit card doesn't cover insurance for a rental car, then you should spring for the rental-car coverage.
It's best to know ahead of time what coverage you may or may not have, since being pressured into making an on-the-spot decision at the counter could cause you to make the wrong decision.
Another thing to take into account, at least when traveling on business, is your company's policy. Sometimes personal insurance doesn't cover accidents that occur while traveling on business and you could be liable.
Should you choose to purchase rental-car insurance, it's best to purchase a loss damage waiver, which covers you in the event of theft or damage, and supplemental liability coverage, which can provide additional coverage if your policy has low liability limits.
If your credit card or personal auto insurance covers your rental car, there's no need to spend extra. But if not, then the peace of mind is worth the extra money.
For more information regarding Auto Insurance call 540.657.5633.