Rental auto insurance covers the cost that would be required to rent a car in case of certain contingencies. The situation in which you might rent a car might vary from time to time. And each insurance policy will cover you only for certain situations.
It is important that you review each and every policy in detail. There will be a lot of sub clauses that you might want to consider while making your decision. It’s good to research your options before you go ahead and make a decision. Because once you pay for your policy, there is no way to reverse on the policy. You have to make a good decision and stick to it.
When you rent a car, normally your personal auto insurance will be transferred onto the car that you rented. That is your insurance policy will start covering the rented car also. The liability coverage limits that you have will remain in effect when you rent a car. And so will your collision coverage and comprehensive coverage. This way you will have the same level of protection that existed on your personal car. And if you do happen to meet with an accident, you will not be penalized by the rental company. But instead the rental company will directly contact your auto insurance company and claim for the damages.
Additionally, your credit card might cover a few of the damages that you might incur in your rental car. Check with your credit card company to find out what sort of coverage they offer. This might not be much, but it will be something. Usually they pay only for the deductible that you are supposed to pay and the rest is assumed to be covered by your normal auto insurance. Some will cover you only for a few days. Some will cover you for only some types or classes of vehicles.
When you rent a car, it is important to find out what sorts of damages or injuries or losses are covered. You need to research your current policies to find out what sort of coverage they offer. If there is a theft from your rented car, you might be covered by your home insurance.
Now, rental insurance is something that is offered by the company which rents out the car to you. You need to find out exactly how much you are going to be paying for your insurance and what it will cover. The rental company will have your credit card and can access it in order to recover any damages that the car has sustained. It is important that you have sufficient protection to pay for any damages that might occur.
But it is also true that rental insurance is pretty expensive. If you are going to be paying $25 a day for a dodge avenger, which is a pretty decent commuter vehicle; you might end up paying beyond 8$ on just insurance. So this adds up to almost 35$ a day. But it does give you peace of mind when you have parked your car outside the hotel or when you are driving out on the freeway. It’s a tough call to make when you are trying to save up and budget your vacation. It is very true that if you save on the insurance for ten days, you might be able to treat yourself to a good gourmet meal. But on the flipside, if you don’t have insurance you might end up repenting it for a long time.