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Should you buy your rental insurance?

When you stand in the car rental office, you will face an important question - do you have to pay an extra amount to buy the rental company insurance and exemptions or do you have to save your money?

Before making a decision, you need to understand the coverage that you may already have for car rental. Personal car insurance coverage, limits, and discounts extend to some of the damages you incurred on some of the vehicles you rent, but may not cover all of the damage your rental company incurs after an insurable accident. Exposed expenses, in whole or in part, include:

Loss of use: While your rental car is off the road and in the store, the rental company may lose money. If they can demonstrate the loss through the fleet usage record that indicates that there were no other cars available for hire instead of that vehicle, your insurance company may cover some related financial damage, but it may not cover the entire amount that will personally make you responsible for the remainder if I waived the coverage of the rental company.

Decreased value: An accident can decrease the value of a vehicle when it appears in the vehicle's Carfax History report. This lost value can be passed to you, and while the insurance company may pay part of the damages that you find reasonable, it may leave you vulnerable to paying the remaining amount if you reject the coverage provided by the rental company
Administrative fees: additional time and workforce goes to work with you and your insurance company on claims. These additional expenses are passed on to you through administrative fees that are not generally paid by your insurance company. Usually, this fee is waived if you purchase coverage through the car rental agency.
It is also important to note that business rents, long-term rents, and international rents may be excluded from your personal coverage, so be sure to contact your agent for your policy details before you assume they will cover you.

Another source of coverage you may have is with the credit card that you use to pay the rent. Generally, credit cards offer repair or replacement of a damaged or stolen rental vehicle. However, they may not cover loss of use or reduced value or administrative fees, and may exclude some vehicles and rental periods. For details, contact the credit card company that you plan to use to pay for the rent.

What rent insurance and assignment cover

The rental company will likely offer you several options for rent insurance to replace or complete coverage on your personal policy. Examples of rental insurance options include:

Collision Damage Waiver - This is basically a contract that is harmless to the damage accidentally caused to it by the rental car. It is not really insurance but it does mean that the rental company will not come after you for compensation. If you are looking for equivalent coverage on your personal belongings, look for collision and your overall coverage limits and discount them.

Assignment of Theft Liability - If the rental car is stolen on your watch, as long as you have taken reasonable measures to protect it, the exemption for theft liability makes you harmless. In personal insurance, this will be covered within comprehensive limits and a discount.

Personal accident insurance - covers accidental death and medical expenses for a rental car driver (as long as it is a tenant) and passengers. In your personal policy, these expenses may be covered in your personal accident or traditional health insurance, with associated limits and discounts.
Liability insurance: In the event that another person is injured during an insurable accident, the liability coverage of your rental car will pay compensation. In your personal policy, this is under the responsibility of bodily injury or damage to personal property.
Personal luggage coverage: You have a home insurance policy that may cover personal luggage that is lost or damaged in a rental car. Or, you can purchase personal luggage coverage for the rental company.

Pay and receive interest

Submitting an insurance claim with your auto insurance company may be relatively easy. In the event of rent, you can submit your claim in the same way you would have done if you had an accident while driving your own car.
When you use car rental coverage for a credit card, you may have a certain time limit within which you can submit the claim and you may also need to prepay and simply be compensated by your credit card company.

Benefits of avoiding rent insurance

Now that you understand what your options are, let's take a look at some of the advantages of not getting a rental car insurance.
Saving money on rent: Some rental insurance programs can end up by doubling the cost of rent. When you rent a car to save money or get a limited vacation budget, it may not be possible to double your expenses effectively.

Feelings Less Wastage: People like to pay to cover insurance when they have a claim, but the majority of tenants who buy car rental insurance will not use it, leaving them feeling as though they have wasted money after the lease term ends. Of course, the protection provided by insurance is never lost, but if you already have additional coverage and purchase that has not been used, you may still feel it.

Benefits of obtaining rental insurance

Of course, there are some good points to buy rent insurance, including:

No deduction: If you have a high discount auto insurance policy, you may want to invest in car rental insurance in order to avoid paying this deductible amount in a vacation related accident. After all, your auto discount is for every accident, not a year.

No increase in insurance premiums: the history of claims can raise your insurance rates as they present higher risks to the insurance company.

How much are you self-insurance?

The insurance policies eliminate all, or part of, the financial liability to replace the damaged assets under certain conditions. Without insurance, the individual would be financially responsible for replacing all lost assets during what would have been a covered risk or, if he did not wish to replace them, simply living without the item and losing the initial investment to purchase it.

Even with appropriate insurance coverage, individuals assume a certain amount of risk themselves. This is called self-insurance and can take many forms including:
Deductible: The amount of money that you must pay out of your pocket before your insurance benefits are paid. Most insurance companies offer insured a range of options for deduction. High discounts can be tempting because they help reduce your premiums, but all of your discounts can be added to different insurance policies.
Waiting times: Certain types of policies, such as long-term care and disability, allow the insured to specify a waiting period. The waiting period is the time between the qualifying accident and the payment of the first benefit. For example, if you are no longer able to complete certain activities of daily life such as bathing, dressing, and preparing food, you may be eligible for long-term care home benefits. If you have a 30-day waiting period on your policy, you will not receive benefits until that period expires. 

During the waiting period, you must bear all costs associated with your care
Policy limits: The insurance policies do not offer unlimited benefits. There are policy restrictions to determine the maximum liability for your insurance company. For example, your health insurance policy may have a maximum lifetime payment of $ 5 million. If your medical expenses exceed this amount, you will be responsible for paying this surplus. It is important to monitor the boundaries of all of your policies to ensure that they are reasonable for the risk of harm you face.

Coverage gaps: Sometimes the way an insurance policy is built can leave a gap in coverage that must be filled with a complementary policy. For example, you may have home insurance coverage but without flood insurance coverage, you leave a gap where some of the damage will not be covered. Having an experienced insurance agent in reviewing all of your documents can help you identify and plan these vulnerabilities before you incur expensive damages.

The amount of money you believe in can be surprisingly large. Contact us and schedule an insurance review and we'll help you understand your self-insurance obligations and plan to reduce them.