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Insurance for Car Rentals: To Buy or not to Buy?

March 23rd, 2012  |  Auto Insurance

Everyone rents a car from time to time. Whether you are on vacation in a faraway land or taking a road trip to the cottage up north in Sault Ste. Marie, you are always faced with the same dilemma at the car rental office.

“Do I buy car insurance for the rental car or not?”

It’s just an up sell from the rental car company anyway, isn’t it? Plus, I have car insurance already, so I must be covered, right? Well, not exactly.

This is perhaps one of the most common questions that get asked by consumers. And, the truth is that there is a considerable amount of confusion when it comes to rental car insurance. This is because there are so many conflicting answers out there. And, if you turn to the internet for an answer, you always have to be conscious of the source.

So, do I need to buy car insurance for my rental or not?

The quick and simple answer is yes. It is not just another scam to get more money from you and it can prove to be very beneficial to you if you were to get into an accident.

Here are the facts about rental car insurance:

  • Yes, your personal car insurance does cover you for liability, but only the driver, and not the car.

  • Other coverage options such as collision are not transferred to the rental car, making you responsible for the damages.

  • Some insurance companies do have policies that offer coverage for non-owner cars. Check with your current auto insurance provider.

  • Some credit cards offer rental car insurance if you use your card to pay for the rental. Check with your current credit card provider before paying for that rental.

Why you should buy car insurance for your rental

Getting rental insurance is advisable. At only a few dollars per day, in most cases, it is well worth its weight in gold if something were to happen to the car. In addition to this, rental insurance:

  • Is relatively cheap

  • Gives you peace of mind in knowing you are covered

  • Will not cause your normal car insurance premiums to go up if you are in an accident

Not buying rental car insurance can cost you down the road if there is damage to the car. Get protected, and get rental car insurance.

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