Auto Insurance For Rental Cars
According to the article “Best Auto Insurance Coverage for Rental Cars” by Brian McKay on monitorbankrates.com, purchasing auto insurance for your rental car may be unnecessary. Many auto insurance companies cover rental car insurance liability and collision. Find out specifically what kind of coverage you have on your own car because most likely you will have that on your rental as well.
If you don’t have comprehensive auto insurance or collision auto insurance you can purchase rental car insurance to cover yourself in case the rental is damaged or stolen. One thing to keep in mind though is the car you are renting must be used for personal reasons, not for business. Many personal auto insurance policies only cover recreational rental car insurance. This is why the rental car company always asks if the car will be used for business or pleasure.
If you are renting a car for business you can take the coverage the rental car company is offering. The daily car rental expense may be more but at least you will be covered and since it’s a business expense, the cost of the rental and insurance is most likely tax deductible.
Many credit card companies offer car rental insurance just for putting the purchase on their credit card. Contact your issuer to see exactly what types of benefits you have with your card. The benefits probably are not as good as the coverage you get with your own auto insurance policy but it is worth looking into. You do not want to purchase car rental insurance if you are covered for free through some other outlet.