The next time you rent a car, you will be faced with a question that is asked of everyone who rents cars have to answer: do you want rental car insurance? Even if you decline their coverage, they will oftentimes try to convince you to buy their insurance. You may see this as a waste of money, but it may not necessarily be. However, if you waive the insurance, you will be responsible for damages to the rental car.
Or are you? Not necessarily. A majority of people that own vehicles already pay for full coverage insurance. In most cases, full coverage insurance covers the policy holder in any vehicle that they drive, including rental cars. Check with your auto insurance agent to see if rental cars are covered by your policy and what deductibles or coverage you should expect if you are involved in an accident.
If you do have an accident while driving a rental vehicle and you opted to use your personal insurance, you will file a claim through your insurance company. You will have to initiate the process, but you will be working with your own company rather than rental car insurance company. However, if you are found to be at fault, your insurance policy rate will go up. Some insurance companies have higher deductibles for rental vehicles than for your own personal vehicle. You will not have a choice where the car is repaired or replaced and the car rental place will typically charge all repairs to your credit card. It will be up to you to go through your insurance company to get reimbursed, less the deductible.
If you choose to use rental car insurance, you will save yourself a lot of dilemmas of using your own. Firstly, your personal insurance rate will not go up if you are involved in an accident and you were found to be at fault. Additionally, with a rental insurance policy, you will not have to pay a deductible.
But rental car insurance is generally very expensive. Unlike your insurance company that calculates rates based on statistics about drivers like you, the rental company charges a flat rate for everyone based on the overall likelihood that their car will be involved in an accident. It is usually calculated on a daily basis, so having the car for an extended period of time (even a week) can be extremely expensive. You will have to weigh the cost of insurance and not having a deductible with the money you might have to pay for a deductible.
A couple of things that you should consider about getting rental insurance are determining your risk of an accident and where you will be driving. You may be at a higher risk of an accident if you are driving somewhere that is completely new to you. A location that has different laws, more traffic, or bad weather conditions may be enticing reasons to lean toward rental insurance. Additionally, many personal Ontario auto insurance companies will not pay for claims from accidents that occur in foreign countries.
One last option that you may be able to consider is the use of your credit card company for insurance. Some major credit card companies provide limited protection on rental car losses. On the contrary, they will not cover property damage or injuries sustained in the accident. Be sure to thoroughly be familiar with the terms and conditions of your credit card company before choosing this option.
Regardless of what option you choose, they each have their advantages and disadvantages. Based on your individual circumstances you will have to choose which option is best for you: rental car insurance, personal insurance coverage, or using your credit card. Whichever you choose, it should not be a decision that you make lightly.
Everyone faces car trouble at one point or another – luckily, Ontario Roadside Assistance is there to provide you with the services you need. From Ontario Car Insurance to other essential services provided, you’re always covered!
Related posts:
- Do You Always Need Car Rental Insurance When Renting a Car?
- Surefire Tips On Finding The Best Discounts And Coupons For Car Rental
- Having Vehicle Insurance Is The Smart Thing To Do
- Know The Facts Before Passing Up On The Purchase Of Add Rental Insurance For Your Car Hire
- Best Place For Rental Car Insurance Online