Many of us already carry the vehicle insurance and the car rental insurance is just the Xerox of it. This is one of the facts that a few car rental companies will never disclose when you are going ahead to rent a car. There are certain provinces where car rentals agencies cannot make you believe that you require car rental insurance. However there are many instances where you actually require car rental insurance and will help you during the entire tour.
Car rental Insurance is also known as Collision damage waiver. This will cover any damage done to the car while you renting it. Theft of the car is also covered under the insurance. There are certain car rental agencies which include personal accident insurance. E.g. The Medical Expenses & Death Benefits, It Also includes personal effects coverage and additional liability insurance.
The car rental Insurance or the collision damage waiver may already have been offered by the rental company but in certain cases the driver already has that. Through the Comprehensive and collision policy the coverage for theft, death, accidents, medical expenses are available or included.
Always remember that certain credit card companies also offer car rental insurance so never forget to consider them. The major credit card companies like the MasterCard and Visa offer coverage on damage for the rented car. The coverage might vary, so an advice is to always consult with the bank or the issuer of the credit card and get as much information you can get.
Why is Insurance Necessary
If you lack coverage for theft or if you have liability-only insurance or also accidents or fire caused by other people for e.g. the valet then it is necessary that you have Rental Insurance. Another factor is to consider the deductibles for certain claims by auto insurance companies; there are few agencies which go as high as $1,000 for the deductibles. The car rental insurance may be cheaper because the car rental company will bear the expenses if something happens.
There is a website for an Insurance Information Institute (III) and according to them the collision damage waiver adds anywhere between $10 and $20 to the rental cost. The liability adds to $8 to $16, the personal accident adds to $4 and the personal effects coverage adds $2 or $3.
The experts Insight
As per the above mentioned (III) actually the collision damage wavers are not insurance but they are for liability. This is just an agreement between the car rental company and the person renting the car that you are not the person responsible if the car is stolen or damaged.
While you plan your trip always research about your car insurance. Once you have decided about the car rental company call them and take information about the coverage. Based upon the waivers being offered by the car rental company and your own insurance you should weigh the cost and the benefits of the car rental insurance. This is one of the perfect ways to determine whether you should go with the car rental insurance for your trip or not.