Should I pay for rental car insurance

February 21st 2008

Everyone likes options, but too many options can leave you confused and unsettled. With several options at the rental car counter, individuals get tempted to purchase anything that you think will guarantee the best coverage for your trip. What you didn't know is that you could be and probably are already covered.

Not only does your insurance policy protect against damages or theft to a rental, your credit card used to pay the rental fee will keep you covered as well. Call your insurance agent and credit card company in advance to confirm, again it's never a good idea to assume. Some card's insurance benefits can change and quite frequently. Such prominent credit card companies are altering the advantages they offer to their users. What's more, often times their cardholders are unaware of such changes.

If you're not insured through a credit card or policy, the list of available options can be a bit daunting, especially when many plans can add as much as $40 more a day. Just another quick buck for rental car agencies, experts say. Many times, this is additional money people are spending pointlessly.

For anyone who doesn't own a car, but are regular borrowers or renters, avoid recurring insurance fees by applying for non-owner liability policies. This will cost you $200-$500 a year. Also keep in mind limits or special insurance requirements when driving outside the U.S.

Above all, plan ahead.