We’ve all experienced it – being at the car rental desk and being assaulted with questions about rental car insurance. Should you get the insurance they offer? Should you pass it up?  Well, it depends on your current insurance coverage.

Generally, your car insurance will cover you if you rent a car.  Usually, whatever deductibles and coverage you have on your personal car will transfer over to the rental.  If you do not have comprehensive or collision coverage, and you car is stolen or damaged, then you will not be covered.  In which case, you should probably purchase insurance for your rental. Also consider getting insurance if you have a high deductible.  You won’t want to pay a high deductible if that car isn’t even yours.  If there are drivers who aren’t covered by your auto insurance and will be driving the rental, then consider getting insurance from the rental company.

If you do not own a car, it is imperative that you get the rental car insurance they offer.  If you don’t, you could end up paying monstrous amounts for any damage incurred. 

Credit cards also play a role in deciding whether or not to get the insurance the car rental company offers.  Some credit cards will cover car rental insurance.  However, usually credit cards will only cover damages to the rental car.  It probably will not cover damages to other cars, personal belongings or property.  It may not cover bodily injuries, either.  It is important to know exactly what your credit card will cover when considering rental car insurance.  There is a toll free number on the back of the card that you can call to find out what coverage your card offers.  Even if you think you know, it’s better to double check as policies can change.

If you do decide to get the rental agency’s insurance, there are still some things to be aware of.  Make sure you get sufficient coverage.  For collision coverage, get the amount that you think the car is worth.  Make sure you know exactly what is covered and for how much.  Also be aware of the conditions of the insurance.  For example, driving under the influence may void your insurance.  Don’t let fees creep up on you.  You may be charged with hundreds of fees for towing, administrative services, etc.  It’s important to know what fees you could encounter.

Whatever you choose to do, make sure you do have some form of coverage.  Accidents happen and when they do, you won’t want to shell over thousands of dollars just because you didn’t have insurance.  Speak to your auto insurance agent about what your policy covers.