Three ways to be insured in a rental car: “Rental car rider” with your insurance provider; coverage your credit card supplies, or pay for the rental car agency’s plan
Some car rental deals seem too good to be true.
Factor in the cost of insurance, up to $40 per day depending on the coverage, fees for additional drivers, fuel, extra mileage charges and roadside assistance expenses, and it can cost way more than double the advertised rental price.
As insurance alone can turn a $99 weekend getaway package into less of a sweet deal, it’s wise to look at your options before you hit the car rental counter.
Rental agency coverage
Check the extent of the coverage. Policies vary with lower rates carrying higher deductible costs, while premium plans may offer zero deductibles.
Rental car damage protection insurance (collision damage waiver) covers the value of the vehicle, but doesn’t carry personal coverage for injury or loss of property. Some agencies offer additional policies, with a range of fees, for liability, medical costs and coverage of personal effects.
There are also exclusions to the coverage, such as in the event of an accident or damage done due to driving on unpaved roads, if the car is taken out of the province, state or country not specified in the contract, or if the vehicle is overloaded or used to tow a trailer.
Your credit card may also be dinged a daily rental fee for the period the car is being repaired, and the policy likely won’t offer protection in the event of a lawsuit if you are found to be at fault in an accident. It’s all in the fine print.
