Why You Don’t Need To Buy Extra Car Rental Insurance

Often times people are confused about whether or not to buy extra insurance when standing at the rental car counter. People end up buying supplemental insurance protection that they really don’t need, That can add anywhere from $12 to $25 a day to the cost of a rental.

The majority of consumers are covered by their own auto insurance, but they may not know it, they may be spending extra money when they don’t have to. And those who aren’t covered by their own insurance, are likely covered by their credit card. Major credit card issuers provide some form of rental car insurance coverage.

To make sure you get covered, you must charge your entire car rental on your credit card and decline the supplemental collision damage coverage offered by the rental company. If you sign up for that insurance, you won’t be covered by the credit card company.

Coverage from your credit card comes with restrictions, several types of vehicles aren’t covered, including trucks with open beds and off-road vehicles, as well as exotic or expensive sports cars.

Some cards do not cover damages that occur on dirt or gravel roads and other cards don’t cover wheels and rims. Some card issuers cap rental periods of 10-15 days, after which the insurance lapses. None of the card issuers will insure a rental car for more than 30 days straight.

Rental cars in some countries are not eligible for credit card insurance. The ones most often named include Ireland, Israel, Italy, Jamaica, and Australia.

One other important note: Unless your personal auto insurance also covers business use, your personal policy won’t cover damage caused when you’re renting a car for a business trip.

Drivers who aren’t sure about their coverage should call their credit card company before they leave for their trip.