Reader’s Question:

Should I buy automotive insurance when I rent a car?

Abe

Wilmington DE

 

When you rent a car, the car rental company, on the average, will sell you automotive insurance coverage. My advice is go buy it. Even if you already have your personal car insurance, you should get that additional coverage.

So what do car rental companies offer? There are four different types of coverage that they give to customers. There is the “Loss Damage Waiver.” While this is technically not an insurance, it gives customers who rent cars the chance to waive payment for any damages done to the rented car or if the car is stolen. This waiver also includes fees that you might incur when your car encounters trouble and needs to be towed or repaired.

A second option is the “Liability Auto Insurance.” This is the most basic coverage that any car rental company can offer you. It helps you financially if you get into an accident and cause damage to property or injuries to another person. “Personal Effects Coverage” is another type that is offered. This protects the customers if personal items are stolen while inside the car. Items like luggage or cellular phones. Finally there is “Accident Coverage” which helps the customer in accidents that need medical attention.

There are times though that you may want to decline automotive insurance. If you are already covered under your personal automobile insurance, then you may decline to accept the “Loss Damage Waiver.” If you already have a home insurance policy that covers theft even if you are away from home, then don’t accept the effects coverage. This may only make you spend more.

Car rental companies will always offer you additional insurance in order to protect the vehicle that they are renting out and to prevent from being sued for the damages. While it is good to always get additional automotive insurance, there are circumstances that you can always decline them.