If you are renting a car because yours has been damaged or totaled in an accident, when you call your insurance provider, ask if your coverage will be enough for towing charges, payment of administrative fees and loss of use. Many people forget to inquire about the loss of use, which can mean hefty fees tacked on by a rental company for lost revenue while the car is repaired after an accident.
If your car insurance provides adequate coverage for a rental car, then there is no need for you to purchase the insurance coverage offered by the car rental company. It is also important to find out the circumstances under which your policy provides you a rental car at no additional charge- some policies only cover rental cars if the accident leading up to the car rental was not your fault.
Another step you can take is to contact the lending agency responsible for the credit card you plan to use when renting your car. Because credit card companies typically offer free car insurance benefits for rental cars, you may also have additional coverage at no extra cost. Some credit cards allow you to earn benefits in the form of rental car insurance. You should also check with your card provider before renting because terms and conditions can change without notice. You will need to know specifically what type of coverage it is and the coverage amounts. In many cases, you may find that your credit card may not cover property damages or limit the amount of medical bills that are covered.
Knowing your options and your current car insurance coverage before renting can keep you from purchasing additional, possibly unnecessary, and potentially pricey car insurance from the car rental company.
