Why Cars Insurance Is Necessary !!

 

Necessary Insurance

Rental insurance is necessary if you have liability-only insurance or yours lacks coverage for theft, fire or accidents caused by other people, like the valet. Another consideration is the deductible that your insurance carrier charges for each claim. Some auto insurance deductibles are as high as $1,000. It may be cheaper to pay for the rental car insurance, because if something happens, the rental car insurance deductible may be less expensive, if there is any, than your car insurance deductible.

Fees

The Insurance Information Institute (III) website states that collision damage waiver adds between $9 and $19 to your rental costs. Liability adds between $7 and $14, while personal accident adds $3 and personal effect coverage adds $1 or $2.

Expert Insight

According to the III, collision damage waivers today are sometimes actual waivers of liability and not insurance. They are just an agreement between you and the rental car company that you are not responsible for the car if it is “damaged or stolen,” states the III website.

Prevention/Solution

Research your car insurance while planning your trip. You should also call the rental car company that you plan to use and ask about their coverage. Weigh the costs and benefits of the rental car insurance based on your own insurance coverage and the type of waivers offered by the rental company. This is the only way to determine if rental car insurance is necessary for your trip.