Do you need to buy rental car insurance, or are you covered?

1171711_classic_car1You just landed from an exhausting flight and are now at the rental car counter and the fast-talking salesperson is telling you that you need to buy their insurance. You think you are already covered because you are putting the rental car on your credit card and you decline. Not so fast, you may not be covered.

Most credit card companies offer collision insurance on rental cars, but there are exceptions so check before you rent. Some companies have restrictions with certain types of vehicles, some only cover rentals in the US or Canada, some don’t offer liability insurance, and some offer none at all.

If you are going out of the country especially, call your credit card company before you leave and find out exactly what they cover where you are headed. This can save you a lot of time and frustration at the rental car counter after your long flight. Remember, the rental car agent wants to sell you insurance, so they will tell you to buy insurance with them. If in doubt, buy the insurance then call your credit card company. You should be able to cancel the extra insurance if you are already covered.

Put the entire car rental and any deposit on your credit card. That way there’s a paper trail if something does happen.

One Response to “Do you need to buy rental car insurance, or are you covered?”

  1. […] If you do find that your standard insurance policy doesn’t include insurance of a rental vehicle, … There are many different policy options that could add up to forty dollars a day. This is a very popular way for rental car companies to make extra money on each rental. Liability insurance is the most common of all insurances charged by rental companies that for the most part are completely unnecessary. […]

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