When renting a vehicle, it's likely that someone behind the counter or over the phone has offered you rental car insurance. While many people might consider this a scam and avoid the additional cost, they are putting themselves at a higher financial risk. While you might not think you will get into an accident, unexpected events occur more often than you may believe.
What rental car insurance covers
A rental car insurance policy will usually apply a small range of coverage options that do not overlap with your other insurance. For example, you may already be covered by your health care insurance if there is an accident and you need medical services. Or, your car insurance might have some coverage for a damaged vehicle. Additionally, some credit cards now offer some kinds of coverage when you use it to rent a vehicle. However, you could be left on the hook when it comes to liability. Depending on what types of insurance you have and how they protect you, rental car insurance can pick up where other policies fall short. Before heading out in a rental car, check with your other insurance policies to see what type of coverage you are missing.
The real cost
The main reason people invest in rental car insurance when they are traveling is the potential financial risks of not being covered. Typically, additional insurance is only a small daily fee when you rent a car. Compared to the cost of major repairs or a lawsuit, the expense is relatively minor compared to the benefits and peace of mind. There's a chance that you won't need the extra coverage, but knowing that you don't have to worry about what will happen to your finances if there is an accident can help many relax on their trips.