Should You Order Insurance When You Get a Car?

by on Sunday, May 12, 2013    |  3 comments

When you are renting a car, you are always faced with the decision of whether or not to order the insurance with your rental policy. This is a question that’s answer can be determined by knowing the insurance coverage you already have with your current automobile insurance coverage. Here is a look at what you need to know about insurance before you rent a car.

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by J. Stephen Conn

The first thing you need to do before you ever rent a car is to take a good look at your current auto insurance policy. Take a look at all the sections to see if you can figure out what it says about rental car coverage. Most people’s auto insurance policies cover them with liability insurance in the case that they cause an accident while they are driving any car, including a rental car.

For policy holders who have this coverage, it doesn’t make any sense to pay for expensive insurance from the car rental company. This is duplicate insurance that is completely unnecessary. Of course, it is important to talk with your insurance agent to make sure that you are completely covered with your liability insurance in case you cause an accident while you are driving the rental car.

For car rental customers who do not have an auto insurance policy, it may still be unnecessary to order the car rental insurance. Many credit card companies offer car rental insurance coverage when renters use their credit cards to pay for the rental. If you do not have auto insurance that covers you when you drive a rental car, then call your credit card companies to see if they do. If you can find one that offers full auto insurance coverage for car rentals, then use that company’s credit card to pay for any car rentals that you get.

In the rare case that neither your auto insurance policy nor your credit card covers you while you are driving a rental car, then you need to pay for the auto insurance from the car rental company. You always want to drive safely by being fully covered in the case of an accident.

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  1. Mika
    May 13th, 2013 at 19:07 | #1

    Definitely try to go with that credit card insurance. I often travel so I benefit so much just by having a credit card company that takes care of my rental car insurance for me.

  2. Ivana
    May 13th, 2013 at 19:27 | #2

    This extremely informative article on insurance has made me reconsider my current insurance policy. Next time I will be more aware and take out renters insurance when I rent my next car.

  3. Aaron Michael
    May 13th, 2013 at 19:32 | #3

    I’m so glad I came across this article. I plan on vacationing in Florida next week and renting a car, but since I have sufficient liability insurance coverage on my own policy already I will not let the rental car company get even deeper in my pocket. Thanks for the sage advice.

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