When you rent a vehicle, the rental agency often tries to push insurance down your throat. And yes, they make it seem inexpensive, but do you really need it?
In fact, various organizations might actually be covering your rental vehicle already.
One thing you need is a Collision Damage Waiver (CDW). If you have any of the following, you might already have one of these:
If you want to know whether any of these things cover you for sure, contact the companies. Your car insurance policy will state whether you have any waivers or if you are even completely covered when driving a rental vehicle. If none of the above cover you, purchase the insurance from the rental company.
Collision Damage Waiver/Loss Damage Waiver: While not technically car insurance, having this waiver means that you are not financially responsible for damage to the rental vehicle from collisions, vandalism, or hit-and-runs. It also means you are off the hook if the vehicle is stolen.
Supplemental Liability Insurance: This car insurance coverage means that you are covered for your Liability when driving a rental vehicle. Damage and injuries you cause will be covered up to the coverage limit. Your legal defense will also be provided for you.
Most SLI policies cost between five and ten dollars a day for anywhere between $20-thousand and $1-million in coverage.
Personal Accident Insurance: This type of car insurance makes sure that any medical expenses needed for injuries to the driver or passengers of the rental vehicle are taken care of. It is well worth getting at only $3-5 a day, but if you already have good health insurance or travel insurance, it may not be needed.
Personal Effects Coverage: If you are concerned about personal items being damaged or stolen while you are using the rental car, this insurance will put your mind at ease. Should your property be stolen or damaged, the insurance company will replace them or compensate you monetarily. The normal price is $2-5.
***Most of these coverages and insurance types will be bundled together into packages. Since you probably don't need all of these, see if you can purchase them separately to save money.
If you travel even a few times a year, it might be cheaper to get a rental policy added onto your normal car insurance than it is to buy these packages every time you rent. Use car insurance quotes to find a car insurance policy with rental coverage for less.