Renting a car is expensive, so many people are tempted to skip the optional rental car insurance. That can be a risky decision, however. When you're wondering, "Should I get rental car insurance?" here are three questions to consider.
Should I buy rental car insurance if I already have a good car insurance policy?
Yes. If you get in a car accident - which may be more likely when you're driving unfamiliar roads in a rental car - your insurance company could slap a 20 percent (or more) surcharge on your policy premium for the next three years.1 Rental car insurance can protect you from this spike in your insurance premiums.
Rental car insurance may also protect you from fees for "loss of use." Loss of use" is something rental car companies claim when their car is in the shop after an accident. They're losing out on rental fees on that car, so they want you to pay for their financial loss. In many states, rental car insurance policies don't cover loss of use,2 but Allianz Global Assistance's Rental Car Damage Protector does.
Should I buy rental car insurance if I'm traveling internationally?
Yes. Driving in foreign countries can be risky and having a good rental car insurance plan will protect you in case of collision or theft. Also, some countries require higher insurance limits than your everyday car insurance policy provides. Read your plan documents carefully, however. Allianz Global Assistance rental car insurance, for instance, does not cover cars driven in Israel, Jamaica, the Republic of Ireland, Northern Ireland and jurisdictions where the law doesn't allow this coverage.
Should I get rental car insurance if I'm planning an RV trip?
No. Rental car insurance doesn't always cover every type of vehicle. Common exclusions include trucks, campers, trailers, motorcycles and luxury cars.3 If you're planning to rent an RV for a cross-country trip or a Lamborghini for a driving tour of Italy, a typical rental car insurance plan won't cover you.
Ready to hit the road? Don't forget to purchase the Rental Car Damage Protector from Allianz Global Assistance. It's an affordable plan that includes up to $40,000 in collision/loss damage insurance, plus 24-hour hotline assistance.
Learn more about rental car insurance so that you can make an informed decision as to whether or not to purchase Rental Car Damage Protector from Allianz Global Assistance.