Going on holiday any time soon? Then you might want to rent a vehicle to get around during your stay. One thing to consider when doing just that is that there’s a huge difference between paying for what you need and being tricked into buying something you don’t.
While you might need a car to travel, many rental car companies will try to persuade their customers to buy an insurance deal. This may not seem like much of an issue, but in many cases you may not need this type of coverage.
Do you need to pay for car insurance when renting?
Generally, it is important to have car rental insurance, but often not from a rental business. While it can be a good idea to do so in some instances, your current coverage may actually be comprehensive enough to cover rental vehicles.
Paying for insurance directly from a rental firm can increase the cost of your deal by a considerable amount – often by double, but it may work out to be even more. This could be wasted money for you, and more cash in the company’s pocket. Many may think that paying out this extra amount is mandatory, but in reality these types of expenses are not always necessary.
For many of these kinds of companies, adding on insurance costs can actually be the most profitable part of renting out a vehicle, since it can often be quite expensive for the rentee, while costing very little, or even nothing, for the renter.
Despite this, some drivers may still benefit from buying their car insurance from a car rental firm.
When might you need car rental insurance?
In most cases, car companies will want to charge you for two types of insurance, yet you may not need to accept these deals if you meet certain conditions. These are:
You have a personal auto insurance policy
Generally, if you own a car, you’ll also have an insurance policy – and most will cover you for the liability part of your insurance for free when renting out a vehicle. While this may not always be the case (be sure to check), if you do have this kind of cover you aren’t likely to need to pay to be insured by the agency you rent the vehicle from.
You pay with a travel credit card
The second type of insurance (the Loss Damage Waiver, also known as a Collision Damage Waiver) isn’t something that personal car insurance policies are likely to cover, but is certainly something that needs to be included. While it may be important to have, it’s often not worth as much as a rental car insurance company will charge you.
In most cases, a good travel credit card will offer this with no extra cost – and many of these cards are free, too. With rental car insurance included, you won’t need to pay excessive amounts to obtain cover from a third party.
The above instances are the main examples of why you may not need to purchase additional insurance for a rental car, but it may be a good idea to check your existing plan to be sure. After all, who wants to pay out additional money to a car company when they don’t have to?