Do you need insurance when renting a car?

We’ve all experienced that moment when we must decide if we decline or take insurance when renting a car. It is important to have a good understanding of what car rental is and what it actually covers depending on the policies you choose.

Most car rental users don’t know what to answer when they’re asked at the car rental counter if they would like to add insurance. If it’s the first time you’re doing this, the chances are that you will hear it at some point.

This hesitation and not knowing what to do may come from the fact that we may have done some previous arrangements regarding our own protection.

It is important to know when to decline if you know for a fact that you are fully covered or when to take the insurance at the car rental counter. It may be wise to ask yourself some questions before making any move.

Does your current credit card offer or come with any type of insurance for car rental?

Currently, many banks include car rental policies in their credit card benefits, like car rental collision damage waiver insurance. Make sure that before going into the car rental place, you call your card company or visit their website and gain knowledge on their terms and conditions.

Benefits and coverage usually go from personal injury to theft. Damage to the rented car should also be covered – check with the bank to see their policies about coverage for damage to other cars or property.

It is important to know all the benefits and exclusions as some credit card companies require that the car is rented using their specific credit card and users must decline any other offered insurance. It is important to ask what happens in the event that someone else besides you is driving the car and an accident happens.

In which case is it better to accept the rental company insurance?

This should be considered only if you wish to add extra insurance to your existing one. It could be an add on for personal effects even though most insurance cover this type of situation.

Overall, if you already have car insurance with a rental car policy, then you should be good with that and there’s no need to add any additional coverage. Ask these questions to the rental company if ultimately you decide to add insurance from the car rental company.

Check your current auto insurance for car rental policies.

Have you checked with your insurer if your current auto insurance policy covers car rentals? If you do have auto insurance, it is important that you call the company and ask about their coverage.

You need to know exactly how it works and its coverage, what happens if someone else is operating the vehicle, does the coverage includes liability, third-party damage and injuries to others? Does it have car model restrictions, is there an excess?

Remember that excess is the amount of money you should pay to contribute towards when a claim is needed and an additional payment through the insurance is required. It’s worthwhile to compare whether a reasonable excess can reduce your standard monthly payment prior to a claim rather than choosing the lowest excess and result in significantly higher monthly payments.

It is important to know when you’re standing in front of unneeded insurance when you can save that money or put it to better use. Remember the PPI scandal? It was the result of misinformation from banks combined with the negligence of people not asking and not inquiring what they were paying for.

Many bank customers are getting money back after many years of constantly paying unnecessary insurance policies.

It may be a good idea now that we’re on the topic to encourage people to claim what’s rightfully theirs, like the money that banks took from PPIs and make them give the money back. If you ever received a loan, line of credit, mortgage or credit card at some point between the early 1990s and 2010, maybe there’s a pending claim waiting for you to claim it. Remember that you can quickly check here if that’s the case so you can get back what is rightfully yours and remember,  the deadline for all claims is the 29th of August 2019.

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