June 18, 2011

Rental Cars And How Auto Insurance Polices Affect Them

When renting a car, it is important to have the proper auto insurance in place, lest anything should happen. Generally there are three sources that provide insurance for rental cars. They are: personal auto insurance policies, credit cards and the rental car companies. The question will inevitably arise at the rental counter. To accept or deny the rental car company's insurance? In order to be properly insured, but not overspend it is necessary to be properly informed.

The first source of insurance for any vehicle is a personal auto insurance policy. Often, a person's policy will cover their rental car with identical coverage. Naturally, one caveat is that the personal vehicle cannot be driven while another is being rented. This is the simplest way to insure rental cars; however, it is not always included in the auto policy.

There are several common reasons insurance policies might not cover specific rentals. Often, they do not include international rentals. Also, if the policy is for personal use but the rental is on a business trip, the rental car might not be insured. Another important consideration is if a personal car is low in value and its policy does not include comprehensive or collision coverage. Because rental cars are usually fairly new and valuable, both are worth considering, even if they are not required by the rental company. As every insurance policy is tailored to the individual and a specific vehicle, the insurance company should be called prior to renting. They will gladly answer any questions and confirm or deny insurance for a rental.

A second source of rental insurance might come from credit cards. Usually a credit card is the required method of payment when renting a car, and often they offer some secondary coverage. However, this coverage is frequently only secondary to another policy and can vary depending upon the company and rental. While calling the credit card company to inform them of travel plans, one ought to also ask about the rental car insurance they provide.

After calling one's insurance company and credit card company, the question to deny or accept coverage can be answered. The answer will vary with each unique situation, but the information will act as a guide. Rental car companies rely on insurance for a portion of their earnings, and often people are confused as to whether they should opt for the coverage or not. There are a number of different coverages offered usually. It can become confusing. When dealing with this after traveling, it can be quite frustrating. People often do not know what to do. By being properly informed renters can confidently know how to properly be insured while not overspending.