If you ever had an experience with a rented car, you might be already aware of the fact that how troublesome it appears to invest in expensive car insurance. Even if you don’t have this purchase in your mind, the experienced professionals at a car rental agency may still convince you on point that this protection cover is very necessary. And later, while driving to your home in your rented car, you will realize that you have made a huge payment for insurance that you don’t even need.
We need to rent vehicles from time to time, sometimes to enjoy vacations with family, and many times to travel for business needs. No matter what is the reason behind your rental, you have to make an informed decision about how to avoid costly rental car insurance. The great news is that there are some good alternatives to car rental insurance that can save you enough money while keeping you well protected on your journey.
Your personal car insurance
If you already own a car, then you definitely have car insurance, and it is the first line of defense for the critical consequences. However, you must make sure that your existing insurance covers you in four important areas:
- In case if you damage the rental car during your journey, the rental agency may charge for all the days when the customers will not be able to use this car. If your existing car insurance doesn’t cover this cost, you may have to pay from your credit card.
- Collision coverage is another essential addition to cover the damage caused by some road accident. The comprehensive coverages may also pay for the damage caused by fire, flood, and vandalism as well.
- The insurance must also provide liability coverage that includes damage to the other vehicle and the medical bills of injured passengers.
- Your personal auto insurance should also offer coverage to the medical bills that occurred after the accident.
Credit card coverage
Several credit card service providers also offer coverage to rental cars. These insurances may be secondary to the personal auto policy, and the claims are usually filed with the existing insurer. Only a few cards provide primary coverage on rental cars. However, one should always stay aware of the exclusions such as rentals in foreign countries, specific types of vehicles like full-sized vans, and journeys on unpaved roads. Full-time students are also excluded from credit card coverage and a car warranty.
Private third-party coverage
If you invest in travel insurance, it is possible to add rental car coverage at a very small price. You can also find good coverage from some third-party even without buying travel insurance. For instance, travelers with an American Express card can avail of premium rental car coverage at a flat fee, and it also includes coverage for medical expenses, accidental death, etc. It is better to check all details before booking your travel package so that you can save more on car rental insurance.
