Read this tip to make your life smarter, better, faster and wiser. LifeTips is the place to go when you need to know about Rental Auto Insurance and other Car Insurance topics.
One of the biggest questions people have about auto insurance has to do with auto insurance and rental cars. Car rental agencies offer insurance coverage on their rental cars, and it can quickly double the price of the rental. In an effort to save money, many people want to forgo this extra coverage and wonder if their own auto insurance coverage will cover accidents and thefts that can occur while in a rental car.
The short answer is yes, your regular auto insurance will cover incidents that take place in your rental car, but only to the limits that are built into your policy and only for those incidents you have insurance to cover. That means, if you don't have comprehensive coverage but instead just have the minimum insurance allowable by law in your state, then you may not have enough insurance coverage to pay for all damage or all incidents. Additionally, you will be forced to pay your deductible and your premiums could go up since you have a claim on your record.
When you buy car rental agency insurance, you avoid many of these problems. You can get comprehensive coverage with no deductible, and claims do not factor into your actual insurance premiums.