Know Your Insurance Basics On Rented Cars

When it comes to car insurance, there are several traps you can fall into. The contracts are complicated and extremely difficult to understand, and that’s if you even have the time to read them. The fact remains that most people do not dare read the insurance fine print and there are significant information shortage when it comes to consumers and the contents of their very own isnurance contracts. Try contacting your insurance underwriter today for your online car insurance quotes.

One of the problems with this kind of lack of information gap is that it can lead to wasted money. Every time you rent a car you are asked what kind of insurance you would like. The choices are generally to take none, which will cost nothing or you may cover liability insurance which would cost around a day. Also you have a wide array of options to cover the rental car itself, prices for which vary from one company to the other. The comprehensive coverage option, which includes liability, passengers, and the rental car usually, comes to around – a day. Most vehicle owners do not have a clue as to what option and alternatives they should be taking.

Liability

Car liability insurance is the sole insurance you are mandated by law to take out on your automobile. All the others are optional. That’s the first and most important thing to remember when you’re at the rental desk, and the total price for your two-week vacation car is quickly adding up and up. The other thing to know is that in many cases, you will be covered, to some extent by your existing car insurance. You will have to check your insurance policy to make certain, but for the vast majority of drivers, they will have liability insurance by virtue of their own car insurance, and this will carry over to the rental car.

It is nevertheless unlikely that full or comprehensive coverage will be carried over from your very own vehicle insurance. This is because comprehensive insurance is calculated based on the value of your car. Insurers don’t want to be in a position where they set your policy based on your say, ,000 vehicle, and then have to pay out when you crash a ,000 rental. So your insurance will only state that the only liability insurance is provided whenever you rent.

Credit Card Cover

You may still want to require no insurance from the car rental company however. This is because many credit card companies, including both visa and MasterCard, offer this insurance if you pay for the rental with one of their cards. This is a major benefit of using a credit card and should not be wasted. Again you should check with your credit card provider what they cover, but the bottom line is, if your own insurance covers liability, and your credit card covers the rental car, why pay a couple of hundred dollars for extra insurance when you’re already covered?

Learn more about online car insurance now and get your online car insurance quotes today.

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