Weigh your options when deciding whether or not to purchase rental car insurance
Monday, September 24, 2012 4:52:13 PM
When traveling for business, it can be tough to weigh the pros and cons of purchasing auto insurance from car rental companies. It's important to figure out whether your personal auto insurance covers rental car costs; for many, rental car insurance proves to be worth the small fee.
According to CBS News, your personal insurance policy probably doesn't cover the rental car company's "loss of use" - the amount that the company loses if their car is out of commision because of your accident. It's important to check with both your rental car company and your personal insurance provider to figure out which costs are covered in the event of an accident, and which are not.
If you're leaving the county, it is probably doubly important to consider a rental insurance policy. Even if your business trip takes you to a neighboring state, different claims are allowed in different locations. According to Investing Answers, you may be safer selecting rental companies' umbrella coverage, because your personal auto insurance coverage probably doesn't apply in all states or countries.
Lastly, CBS News recommends taking into account your long-term insurance costs. In the event of an accident, claiming insurance payments from your personal company can put you in the category of "high risk driver," and will probably make your rate more expensive. Filing claims with a rental car company decreases this particular risk.