When you are offered rental car insurance coverage at the rental car counter, do you really need the extra coverage? In most cases, this extra cost is unnecessary because it is already covered on your personal auto insurance policy, and can be avoided by checking with your local insurance agent. Before choosing the added cost, go over your existing policy with your local insurance agent.

Certain Rental Car Coverage Might Be Necessary

While most of the coverages on your policy will keep you out of harms way. One charge to look into will be the Collision Damage Waiver, or CDW. This charge will insure that you don’t pay any extra fees if you are involved in an accident. The insurance company will charge you for the damages to the vehicle, and the “loss of use”. “Loss of use” is for the time and money the rental car company losses while the car cannot be rented. Your policy might cover the damage to the vehicle, but the “loss of use” will most likely not be covered.

The extra $8 - $11 a day charge would be well worth the insurance company not demanding payment out of pocket right away for the “loss of use” and the damage to the car. The extra fee also would be worth not having to get reimbursement from your rental car insurance company. One note to consider: your personal insurance coverage probably will not cover renting a car in another country.

Does your Credit Card Cover Rental Car Insurance?

You will need to check with your credit card information package to insure the coverage. Some cards will cover damage and theft when renting a car, but only cover basic models, and with upgrades at an additional cost. Your credit card, in addition to your existing automobile policy will cover basic needs.

Does Your Existing Policy Cover Rental Car Reimbursement?

Some policies offer optional coverage through your personal auto insurance, with some paying all or part of the costs. Do not confuse this policy with the extra coverage you will need while using a rental car. This policy is generally a add-on to your existing policy, and should be looked over to cover your needs.

Please contact your insurance carrier or agent before getting rental car insurance.You might already be covered with your auto insurance policy, you might consider adding to a few things to cover all bases.