Whether to purchase the rental car coverage offered by the rental agent is a question we get often. Often these insurance waiver costs are also very costly when renting a car on vacation or to replace a car in the auto body shop.
Your first decision would be whether the extra cost is reasonable considering the risk for uninsured loss should something happen to the vehicle while you are renting it. Most rental contracts make you responsible for any damage to the vehicle if you don’t have the damage waiver.
If the car is damaged, there are some factors to consider on whether your personal auto policy would cover these damages. When renting you will want to consider your liability limits on your auto policy to make sure it is sufficient to cover what may be the damage cost required by the rental company. Also, check your policy to see if there are exclusions when renting a vehicle for business purposes. Premium increase and the inconvenience of dealing with the rental company’s insurance & your own insurance company may also be factors in considering to add the rental car insurance waiver.
We recommend considering the factors of suffering damage to a rental car and make your best decision on whether to take the risk or inconvenience. At Gregg Stephens Insurance, we can also help you weigh the differences or answer any questions you may have about your auto insurance policy relating to renting a car.