Reader’s Question:

My car is undergoing repairs, so I rent a car here in West Virginia. Do I really need to purchase car rental insurance from the same company where I rent cars, or will my existing auto insurance policy cover for that?

Linda

Charleston, WV

Insuring a rental car can be very confusing for most of us. We do not think much about it until we are behind the counter of a rental car company and is being offered auto insurance coverage for the car we will rent. Most of us buy unnecessary insurance coverage from the rental company just because we are unaware of what our existing car insurance policy covers. This results in thousand of dollars of unnecessary spending.

Before buying rental car insurance, make a call to your local insurance agent in West Virginia. Check on your current coverage. Generally, coverage and deductibles on your own vehicle would apply when you rent another car provided that you are not using it for business purposes. However, if you have removed the collision and comprehensive insurance in your policy, then your rented car will not be covered if it was damaged or stolen.

Another very important thing to do before getting that rental car insurance is to call your credit card company. Most credit card companies provide certain coverage to rental cars. But you need to know what the exact coverage is because the level of card used for renting provides different types of auto insurance coverage. Say for instance, a platinum card may offer more coverage than the gold card.

Knowing all your options in this matter will prove to be financially rewarding in the end, so do not hesitate to call them and inquire as much as you can.

Tags: auto insurance coverage, collision insurance coverage, comprehensive insurance coverage, deductible, rental car insurance