clock January 25, 2013 comments No Comments flowchart Automobile InsuranceHomeowners InsuranceOur Blog tag SafetySaving Money

If you have ever rented a car, you know that the rental company always asks if you want to buy the insurance.  What is your answer?  You may think it is a good idea to have the insurance because who knows what could happen out on the road.  Or you may opt to not purchase it and take your chances.  Which is the right answer?

The truth is it is really a preference.  But before you make your decision strictly based on chance, think about it.  If you have any type of insurance otherwise, like car insurance or homeowners insurance, you may already have the coverage you would need in an accident with your rental car.  Call your insurance agent before you rent a car to find out whether or not you already have coverage.

Keep in mind that even if you do have coverage through your personal insurance policies, you may have a high deductible to pay in the event you need to file a claim.  In a lot of cases, the deductible could be upwards of $500 which might be more than an accident could cost.  If you were in your own car and had the same accident, you would have the option of getting your car fixed or not.  With a rental car, you will be responsible for the repairs regardless of whether you want to pay for them or not.

It may be worth purchasing the insurance that the rental company is offering at a fraction of your deductible cost if you think you will need it.  If you end up having an accident that comes with a $499 price tag and you have a $500 deductible on your personal insurance, purchasing the rental insurance will have been worth the money.  Just remember to check the amount you will be asked to pay each day and see if it is worthwhile.