This question is common among travelers – should I deny rental car insurance when I travel? There are a number of factors that point to having travel insurance with car rental collision coverage as the best option.
Why your own auto policy isn’t enough
Some drivers with older cars elect not to carry collision coverage on their older vehicles due to the cost. If you don’t have collision insurance on your primary vehicle, you won’t have it on a rental.
Some travelers rent vehicles that are worth far more than their automobile at home. The coverage you have with your existing policy at home may not be enough to cover the vehicle you rent on vacation or when traveling for business.
Understanding the coverage
Rental car companies can charge you for each day the damaged vehicle is out of service. This is called ‘loss of use’ and your own automobile insurance plan likely does not provide coverage for loss of use. Why would it?
The coverage you have through your credit card may or may not include coverage for loss of use as well.
Some rental car companies can charge you for ‘loss of value’ as well. This means the loss of vehicle value after the damage is repaired and it can run into the thousands of dollars.
Where to get the best price
If you decide to get coverage for the vehicle you rent while on vacation, most people know to avoid the rental coverage offered at the car rental counter. First, it’s typically far more expensive than the coverage provided with travel insurance plans and it often comes with a variety of exclusions you won’t have time to review or understand when the kids are jumping up and down anxious to get going.