Best Auto Insurance: Do I Need Rental Car Insurance?

best-auto-insurance-do-i-need-rental-car-insurance Best Auto Insurance: Rental car insurance is an after thought for most consumers until they are actually in the process of renting a car. Most people now shop online for the best rental car rates they can find but those savings can be wiped out by purchasing unnecessary rental car insurance.

Before you rent a car you should first check with your auto insurance company to see what rental car insurance coverage you have. Most auto insurance policies cover rental car insurance liability and collision insurance coverage.

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Auto Insurance

Best Auto Insurance Coverage for Rental Cars

When you speak with your auto insurance company about coverage on your rental car find out exactly what coverage you have on your own car because more than likely the coverage will be the same for a rental car.

If you do not have comprehensive auto insurance or collision auto insurance we recommend either purchasing the rental car insurance to cover yourself in case the car is damaged or stolen.

The one big gotcha is the car you are renting must be used for personal reasons, not for business. Most personal auto insurance policies only cover recreational rental car coverage. Now you know why you’re always asked at the car rental counter “is this rental for business or pleasure”.

If you are renting a car for business we recommend that you take the coverage the rental car company is offering. The daily car rental expense will be higher but at least you will be covered and since it’s a business rental the expenses are tax deductible.

You will also get some auto insurance coverage with the credit card you are using to rent the car (Car rental insurance credit card). The amount of auto insurance coverage will depend on the bank issuing the credit card and the type of credit card.

More than likely the auto insurance coverage you get through a credit card will be less then the coverage you have with your personal auto insurance. Call you credit card issuer to find out exactly what coverage you have when renting a car.