If you're planning to rent a car for your next trip, you might be wondering whether you need rental car insurance. Here are 4 reasons why rental car insurance (RCI) can be a smart investment:
Lack of personal auto insurance. If you don't have your own auto insurance, you'll definitely want to add the rental company's insurance to avoid paying out of pocket for any potential damages that might occur.
Your auto insurance coverage:
- If you have auto insurance, you may assume that you're covered when you rent a car. However, some policies don't cover rental cars or provide very limited coverage.
- By purchasing comprehensive and collision RCI, you can avoid using your own insurance and potentially facing high deductibles and higher premiums in the event of an accident.
- If your personal auto policy has very low liability limits (covers injuries to others and/or their property), consider buying RCI for additional liability coverage. Make sure you understand the amount of liability coverage the RCI covers before you add it because it can vary by location.