Rental Car Insurance – Should You Buy Rental Car Insurance?
The plane landed within an hour behind schedule. You're now in a hurry to attend that crucial meeting. It's already clear that your customers gathered around a conference table waiting impatiently. You step to the front of the queue at the car rental counter, with six other unhappy businessmen on the other side of you who are late for their appointments, too. The agent at the counter puts the contract down in front of you, and then circles all the spots on the contract that you're expected to sign or acknowledge. She then stares at you, as if to say, "Hurry up!" The font size is small. These sentences have been written using Legalese. You'd like to stop and read the fine print, but you feel people behind you becoming more angry. You thought you could lease the car costing $35.00 per day. When you add all the additional features it's today $70.00 for a day. Oh...the pressure...the panic! You agree to sign, and leaving your initials in all the right places. You get your contract keys and head to your car, internally feeling as if you're a failure, and angry because you failed to stand and defend yourself. If this tale seems all too familiar to you, then there's some hope in the near future! No matter if you're an established car rental company or an occasional visitor who needs to rent cars, you'll most likely encounter these types of options at the counter for car rentals. Certain people just refuse everything. Some individuals purchase all the coverage offered. Visit:- But...are you spending a ton of money on unnecessary coverage or leaving yourself dangerously under insured? Before you leave for your trip, I recommend that you make two phone calls to your auto insurance provider as well as the credit card company you'll be using to pay for the rental car. You'll have to discover if you have automatic coverage on your car rental with each of the companies, as well as the conditions and terms for that automatic coverage. FIRST...CALL YOUR CAR INSURANCE COMPANY If you have a personal or business auto insurance, there is insurance for damage to your auto. The Insuring Agreement in most policies stipulates: " We will pay for direct and accidental loss to 'your covered auto' or any 'non-owned auto,' including their equipment, minus any applicable deductible shown in the Declarations." Another word is IMPORTANT! "If there is a loss to a 'non-owned auto', we will provide the broadest coverage applicable to any 'covered auto' in the Declarations." Here's an illustration of how this could work for you: You have two vehicles. One is the 2005 Toyota Camry with full coverage. It's worth $24,000. The other is a 1980 Chevy S-10 pickup that is worth $1500 which you will only use for trips back and forth to the local home improvement store, and you're only covered for liability coverage on the pickup. If you took a rental car and it was damaged, the insurance company will provide the entire coverage of the rental car that is the most comprehensive protection you could get under your policy. If you normally drive an older car with only liability insurance on it then there isn't any property damage insurance coverage extended to the rental vehicle. In this situation you will need to use the credit account's Collision Damage Waiver, or purchase the CDW through the car rental company. Ask your insurance company representative what coverage you have on your vehicle. Ask if there is a limit on the value of your Collision coverage. If there is an amount limit, and you drive a seven an old Ford Taurus that's worth $5,500...and you lease a brand new Cadillac Escalade that's worth $55,000...will your auto insurance coverage will cover the damage to the higher valued vehicle? It's vital to be aware of could be liable to the rental car company tens of thousands dollars to fix or replace a costly rental car if it's not properly protected. Learn about the limits of liability. Make sure that your limits exceed the minimum limits set in your particular state. Limits over $100,000 per individual/$300,000 per accident for Bodily Injury, and $100,000 for property Damage are extremely low. You should ensure that your have no limits lower than the amount...higher would be better. Find out about the collision and comprehensive deductibles have on your vehicle, as those deductibles apply when renting an automobile and you use your own insurance for rental coverage. Make sure that you are covered for Uninsured Motorist and underinsured Motorist insurance on your business or personal insurance. If you are in an collision with an uninsured motorist and the crash was his fault, regaining your rights is nearly impossible. The same applies to a motorist that is underinsured. Best to have your own coverage protection. Q: What if I don't have a car or have no car insurance? A When you don't own a car it is not possible to have an auto policy. It is recommended to purchase the rental car insurance and both CDW and liability coverage. Also, you could take advantage of the credit card's CDW and purchase the optional liability insurance from the rental car rental company. If you're a frequent renter of cars, however, you can nevertheless purchase the "non-owner" liability policy. This option could reduce the cost of coverage available through the car rental service. Q: What happens if my personal property inside the car is damaged, or taken away? A: A majority Collision Damage Waivers provide coverage for loss of the car but not for personal items that is stolen or damaged within the vehicle. Check your homeowners or renter's insurance policy as you might have insurance coverage from them for the loss and damaged property. There is a chance that deductibles will apply. Here's an extremely important hint! Some people think that if they buy the Collision Damage Waiver or utilized the CDW from their credit card, and their rental vehicle was damaged, they do not need to report the damage to the insurance company they own. They are hoping that because the CDW protects the damages, it will not be a problem for their insurance policy ....and they won't have to worry about the benefit of a rate increase. WRONG!!! Don't fall for the false impression that you can get away without having to report your accident to your own insurance provider. In the majority of accidents, more things are damaged than the car rental. Even if your accident is only you running into an obstacle, the owner of the railing will have to ask you to pay for the damages. Additionally, others could have suffered injuries. You could have a large liability risk, and you may need to use your business or personal auto policy to cover your losses. Your insurance policy provides legal representation in the event that someone files an action against you to claim damages.  

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