If you've ever rented a car, you've experienced the pressure to buy the rental car insurance. To make it worse, there are four types of insurance they try to get you to buy: loss-damage waiver, liability, personal accident insurance, and personal effects. If you don't purchase them, they not only make it sound like you're crazy for not buying it, they also make you sign several additional places saying that you know that you are liable if there is something wrong with the car when you return it. I'm sure many people buckle under the pressure and decide to buy it after all figuring that it is better to be safe than sorry. Is it really the wisest course of action? Are you playing a form of Russian roulette if you don't buy it?
Chances are, the insurance you already pay for (car, home, and health) will already cover most of the possible problems you may encounter with your rental car. If you purchase the Rental Car Agency's insurance, for up to $50/day, you'll almost assuredly be double covered in several areas. That doesn't mean that you should automatically refuse all the insurance options offered you by the rental car company. There are situations (like if you are out of the country) in which your insurance won't cover you in case of an accident. The key is to be informed before you enter the rental car agency so that you know exactly what you need, and what you don't. That way you won't be pressured into purchasing double coverage, while still making an informed decision about what you might need.
So how can you find out exactly what you need? One way is to call your insurance company representative. If you are traveling on business, check your company's insurance policy since many personal insurance policies don't cover you in those situations. Also, I've found the following web page very informative regarding whether or not to purchase additional coverage: nerdwallet.com
One other note of caution, make sure you thoroughly check your rental car for damage before you drive off the lot. I've found a couple of things wrong with the rental car I was assigned that weren't noted on their checklist that I probably would have been charged for upon returning it. Also, when we went to Philadelphia, the car we rented wouldn't start. We had already completed all the paperwork, so they just switched keys for another car and changed the information in the computer at the desk. Since we were in a hurry, I failed to do another vehicle check and noticed later that the front grill was cracked. Sure enough, they tried to charge me for it when I returned the car. I fought it, and since I hadn't signed anything saying that that particular car was in great condition when I rented it, they finally dropped their claim; but the hassle it caused almost made us miss our flight.
So, the next time you rent a car, do your homework before entering the rental car agency. It could save you a lot of money or a major headache. And don't forget to bring proof of insurance with you. Evidently, this is a new ploy being used by some rental car agencies to coerce you into buying their insurance. As you are picking up your car, they insist that you prove that your insurance covers you driving one of their vehicles or they charge you for the insurance anyway. Good luck on your travels.
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