Whether renting a car for business or for pleasure, the last thing anybody wants to have to worry about paying for damages to a rental vehicle should it happen. For this reason, there is car insurance to cover drivers who are operating a rental vehicle. Many people opt out of purchasing car insurance because they feel it is an unnecessary expense. The truth is, without car insurance a person could be liable for a lot more money than what the cost of car insurance would be if he or she were to sustain damage to a rental vehicle.
A common misconception among many people who rent a vehicle is that their personal auto insurance policy will cover them for rental vehicles as well. This is not always the case. Some personal auto insurance plans will cover a driver when he or she rents a vehicle but this is not the norm. A person should always consult his or her insurance policy or speak to his or her insurance agent to help determine if rental cars are covered on the personal auto insurance policy. If rental vehicles are not covered by the personal auto insurance policy, then the renter has a responsibility to secure rental insurance.
Car insurance can be purchased directly from the rental company. Many rental companies offer different insurance coverage plans to meet the individual needs of the renter. The car rental insurance premium is calculated by a daily rate and in some cases a weekly rate if a person is planning an extended rental period. The premium amount is added to the rental fees and paid for all together. A renter would have to opt for and purchase car rental insurance at the time of rental. It cannot be added at a later time. This alleviates the possibility of insurance fraud.
Purchasing car insurance is not always necessary when renting a vehicle. Some major credit card companies offer cardholders perks such as car rental insurance just for being a member. To be eligible for car rental insurance through a credit card company, that exact card will have to be used to secure the rental. Not all credit card companies offer this perk to its members. A person should always call and consult with an agent from his or her credit card company to determine if he or she has this coverage and what the eligibility requirements are to take advantage of this perk.
Despite the concerns of many individuals, car insurance is a solid investment. The cost for car rental insurance is far in comparison to the costs a person would endure if he or she would have to pay for damages out of pocket. Car rental companies always offer car rental insurance as an option at the time of rental. Some people may qualify for coverage either through their personal auto insurance or through their credit card company. They should always consult their insurance agent or credit card company to ensure they have coverage.