Rental Car – Should I buy the insurance?

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Whether to buy the rental car insurance coverage is a question insurance agencies get often.  A good rule of thumb is to decide if the extra cost is reasonable considering the risk for uninsured loss should the vehicle have damage while you are using it.  Most rental contracts make you responsible for any damage to the vehicle if you don’t have the damage waiver.

These are some factors to consider with rental car coverage:

  • Will your existing personal auto policy cover the damages made to the rental car?
  • Will your liability limits on your existing policy be sufficient to cover the damage cost required by the rental company?
  • Are there exclusions when renting a vehicle for business purposes?
  • Will your premiums increase in case of an accident?
  • Can you afford the time and energy spent working with the rental company & your auto insurance company to resolve the issues?

It’s best to consider these factors when deciding on whether to get the rental car insurance or to take the risk.  The agents at David’s Insurance Services in Los Angeles can also consult with you to determine your most cost-effective option.