Rental
Car Insurance
By Seth Miller
Everyone insures his or her own car. Not
only because it is mandatory by law in most states, but also because it
offers compensation in case of loss or accidents.
When people rent a car, for whatever
reason, it may be essential for them to purchase additional rental
car insurance.
When a person goes to a rental agency, it
is possible to buy rental car insurance coverage.
This coverage is generally expensive
and may cost anywhere from $8 to $28 per day, depending on where the
person is renting the car.
If the car does not have coverage, the
customer will have to pay any damages from his or her own pocket. |
Tip!
If you've ever watched people at the rental car counter, you know these
are questions that most people struggle with. Sometimes you can decline
additional insurance on car rentals, but there are specific
instances that you should always buy the rental car insurance.
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The best option for the customer is to
check first with his or her own insurance company. Many car insurance
companies simply transfer all the coverage on the insured vehicle to
the vehicle that has been rented. This coverage typically includes
liability or third party coverage, comprehensive and collision with the
same deductibles. This saves the customer from spending more.
Tip!
One of the biggest areas of confusion is the Collision Damage Waiver (CDW)
offered by the car rental company at the time of rental. It covers
damage to the rental car if you are involved in an accident.
Also, some credit card companies offer
the CDW (Collision Damage Waiver) on certain conditions. A person
may have to charge the whole rental amount on the same credit card or
decline CDW. It is also necessary to fully understand the terms and
conditions set by the credit card company. There may be exclusions or a
list of approved rental agencies.
In case a person does not have any of
these options, it is advisable to buy CDW. It is always good to have a
cover because it saves the customer the burden of paying a huge amount
in case of any damage.
There is stiff
competition in the market for a share of the car insurance
buyer's money. It is appropriate to find out the best option before
accepting any rental car agreement. |
