Is rental car insurance worth it?
Last Thursday I was traveling to North Carolina and I decided to hit the road. So I reserved a vehicle at my favorite budget location. When I went to pick up the car, I gave my credit card and ID as usual and then the question about insurance came up. I remember the last time I rented a car was January of this year and also in December of last year and I declined the insurance option on both occasions. I did not pay a lot of interest on it at that time and just brushed it off like many people as a waste of money since it was likely to double my rental charges.I had heard when you use your credit card to rent, they automatically cover the car and so I thought I was covered. Plus this was a good chance of paying the lowest rental rates since when I was under 25, I had to pay additional daily charges for being “under age.”
First forward to last Thursday and I was faced with the same question.This time they had a good sales person who really scared me of how I could incur out of pocket charges and so I bought the liability option for $20 since the comprehensive was $54. She also started talking about how much deductible I had on my own coverage and everything became to complicated to understand and that was another reason I just took it. Since I did not need to use it, I feel like I wasted some money over the two days I rented the car.
However, it is better to have it than wish you had it. Right? So below are some reasons you might want to take that insurance the rental company offers you:
- Don’t just assume your credit card company will cover your rental. Be sure and if unsure, just buy the rental company one.
- Your car insurance might cover the rental but it won’ cover the “loss of use” charges that the rental company will charge you because their car is not making them any money as it get fixed.
- Your insurance premiums might go up if you have an accident in the rental and make a claim through your own insurance.
- Your insurance might not cover all your medical bills if you are injured.
However having a nice credit card and comprehensive insurance coverage is a plus when you are renting a vehicle.
When you rent a car, do you buy the rental company insurance?