Vacations, car wrecks, or moving could all mean renting a car. A lot of questions come with car rentals, but one of the more important and often last questions people ask: Should you purchase rental car insurance? According to the National Association of Insurance Commissioners, you should check if your personal auto coverage or your credit card offers rental coverage.
The most important coverage is liability and collision. This type pays for damages to your car, other cars or property you may hit. Generally, if you have collision, it is not necessary to purchase additional coverage on your personal insurance, but it depends.
Credit card rental insurance usually includes some collision and theft protection. American Express business offers coverage and a flat fee for the rental period not just a specific day. Master Card and Visa also offers coverage as a secondary benefit. Discover offers no territorial exclusions, however, if traveling internationally, some countries do not recognize Discover. And it is important to request a copy of the car insurance so you know exactly what is covered.
Consumers wonder about how their homeowners policy may play a part in all this. Usually, the policy covers items that would be stolen from the rental car, but again read the fine print.
The first step is to check your policies to see if coverage will extend to your rental car. Geico recommends that you also want to make sure the value of both cars is similar. If they are, then you should have adequate coverage.
