5 Factors to Consider When Deciding if You Need Rental Car Insurance

Many motorists don't know how to respond when they're asked at a car rental office if they want to purchase insurance. Obviously, it's important that you have insurance coverage when you're traveling in a rental car, but there are many potential ways you might be covered already without knowing it.

Consider the following five factors when you're renting a car to help determine whether or not you need to purchase a rental insurance policy for your trip:

Your car insurance policy

If you have a car already, your existing auto insurance policy might offer you insurance coverage for when you're driving a rental vehicle. 

Yet you should look at more than just if you are covered by your existing policy. You should also look at how much coverage you have. If your auto insurance policy offers you as much coverage on your rental car as it offers on your actual vehicle, you should be ok. If coverage is reduced for a rental vehicle, you might want to purchase a rental policy. 

Your car insurance rates

Many motorists are worried about the possibility of their auto insurance rates going up. In this case, you might want to purchase rental insurance. Rental insurance will be a one-time purchase. On the other, a rate increase on your auto insurance policy if you get in an accident with your rental car will mean increased expenses over the long term. 

Your home or renter's insurance policy

If you have home or renter's insurance, you should know that this policy most likely offers you insurance on any damages to objects you're transporting in your rental vehicle. This will be an especially important consideration if you'll be traveling with some expensive possessions in a rental car.

Your health insurance policy

Auto and rental car insurance policies typically offer coverage for medical expenses resulting from a vehicle accident. However, this coverage could prove to be redundant for you if you have a good health insurance policy that covers medical costs for you. 

Your travel insurance policy

Travel insurance policies often cover rental insurance. One thing you need to look into if you're going to be covered in a rental car by a travel insurance policy is whether the coverage offered is "primary" or "secondary".

With primary coverage, you don't have to let your own auto insurance company know about any accident that takes place while you're in the rental car. However, if the travel insurance specifies that rental car coverage is secondary, you will have to rely on your own automobile coverage to cover the accident damages first and then the travel insurance policy will cover any further expenses left over. For more information, contact a business such as Allstar Insurance.