Many major insurance companies offer rental car insurance as a feature of their normal packages.

This protection negates the need for policy holders to buy the more expensive insurance offered at the rental car companies. The rental car coverage may not be all you would expect it to be either, as the driver may still be held liable for expenses such as loss of income which can be quite a hefty fee as it will cover the full time the vehicle is in the repair process.

Using your own insurance company to cover you will release you from any of these worries.

They will deal with the whole process, leaving you financially unaffected.

If you are renting a vehicle in another state or another country you will want to confirm with your insurance company that you are still covered. There may be extra coverage you will want to purchase in order to make sure you are fully covered in case of an accident.

Rental car companies owe a significant portion to their sales of rental car insurance. Many of these companies offer multiple and diverse insurance packages to their customers in order to cover the remote possibility of damage or expense. For an infrequent traveler, the peace of mind can be worth it. A savvy traveler knows to check the coverage offered by their regular insurance instead. Often they will find that it is worth the effort in savings as well as the ever-elusive peace of mind. In addition to the insurance you normally carry, some credit card companies offer limited insurance protection as well. This can come with some very specific rules for claiming coverage, but can also be useful in a pinch. Ultimately the answer to whether you need rental car insurance is, it depends. Know your current coverage first and then go with your gut.

If you’re planning on renting a vehicle, it might be a good idea to check with not only your insurance agent but also your credit card company. Credit card companies often have coverage for a rental vehicle rented using their card.

If you do find that your standard insurance policy doesn’t include insurance of a rental vehicle, you will want to know exactly what your coverage is through the rental company. 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.

If you’re standing at the counter to rent a vehicle, don’t allow yourself to feel pressured into buying what you don’t understand, just because there are people waiting behind you. Make sure you know exactly what you are buying and whether or not you truly need to buy it.

Some states also require coverage for uninsured motorists and for other issues. Your state will regulate how much insurance you need to some extent, but you’ll still have options.

Most people only go for the minimum coverage because they don’t want to pay a lot of money, but if you travel a lot you might want to consider other options like breakdown insurance, towing, rental car reimbursement, and similar options. These can be very valuable to you if you have a problem on the road somewhere and you’re not close to home. They’re worth getting if you generally go far from home quite often. If you never leave your hometown, they probably won’t benefit you very much.

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.

However, what if I am wrong and something were to happen when I was driving their rental car? The good thing to do is ask your insurance company before you rent a car. This way you do not end up paying for more insurance than you need.

There is a reason why insurance is an optional feature when you rent a car. This reason is not because the car rental companies are greedy and looking for something else to sell us like I was suggesting. It has more to do with the type of coverage your current policy has, and usually the policy you have transfers to your rental. For example, if you have liability insurance, you are only covered for the costs of the other person’s vehicle if you are at fault in an accident. If this is the case, you might want to pay extra for car insurance when you rent a car, especially if you are renting a brand new car from them.