No matter how many times you take a flight and end up at the car rental counter, you face the same question: Should I buy insurance when I rent the car? The answer is unclear because there are many different thoughts on who needs to purchase coverage, when to buy it, or if you need it all. After all, the last thing you want is to be in the hook for an auto accident in someone else’s car. Car rental companies want you to sign up for expensive coverage, known as a collision and damage waiver. It is relevant that you know how you’re protected when driving a rental car. So before you book your next vacation, explore the options available to you.
Car rental insurance is otherwise known as a Collision and Damage Waiver (CDW). The optional insurance waiver covers most damage or theft to the rental vehicle during the rental period. It does not cover personal liability damages. So who should purchase this type of coverage? Here are some instances to consider purchasing a CDW policy when renting a car:
People are often surprised that their credit card company provides collision and damage coverage. They are also pleased to learn that their personal auto coverage can provide damage coverage when renting a vehicle. However, buyer beware: the cost of taking out a CDW can add up to $30 or more to the daily rental rate!
In most cases, the answer is peace of mind. Purchasing a Collision and Damage Waiver can offer situations that make choosing this worthwhile. Here are some things to consider:
It is critical to weigh the pros and cons before purchasing rental car insurance, saving you thousands of dollars. To verify your coverages, call your auto insurance carrier and your credit card company to verify in advance the coverages you already pay for.