Rental car insurance and the increased cost of gasoline and rental cars are making road trips expensive. Some drivers use their credit cards and existing auto insurance to avoid paying for rental car insurance. While it may help you save on some costs, it won't fully cover you against accidents where you are at fault. Therefore, before waiving the rental car insurance, know what and when it covers before deciding on a course of action.
Your policy type and its coverages play a vital role in deciding whether or not to waive the rental car insurance, because different policies cover different scenarios. For example, basic auto insurance will cover you against third-party bodily injury and property damage caused by an at-fault accident. It will not cover damage to your rental car.
However, comprehensive and collision coverages will cover damage to the rental car resulting from vandalism, theft, flood, fire, and collision with another vehicle or object. Therefore, you can waive the rental car insurance if you have these coverages.
Also, check if your policy covers administrative fees, including loss of use and towing, as the rental company may charge you for the time their car is in the repair shop.
Yes, at-fault accidents will increase your premium just like it would if you were driving your car.
Your credit card may offer protection in some circumstances if you use it to pay for the rental car. American Express credit cards (including all of its US business and consumer cards) cover rental cars' loss and damage, whereas Visa cards offer some collision coverage. However, Discover Financial Services has stopped providing rental car insurance benefits on its credit cards since 2018.
Ensure to check what your existing car insurance and credit cards cover. You can then, check what your car-sharing service offers, as some companies offer liability coverage and the option to choose from various levels of physical damage protection. You can refuse the insurance provided by the car-sharing service if your current auto policy is adequate to protect you. However, if their policy is necessary for your protection, don't waive it.
A comprehensive auto insurance policy might let you forego the rental company's insurance by providing you with enough coverage at all times against all risks. If you are looking for the best-in-class car insurance that offers extensive protection, contact us today at Abatelli Insurance Group, and we will assist you.
