Need Insurance?

Do you need insurance? The short answer is yes.

Do you need rental car insurance? Maybe.

It’s easy to get overwhelmed by all the insurance options available. Car rental companies often make it confusing by combining two policies together. It may seem like a good idea to get maximum coverage but you’ll end up paying more than you need to. Very possibly for something that you’re already covered for!

There are generally four types of insurances available at the car rental.

1. Collision Damage Waiver: Also known as Loss Damage Waiver. It insures against accident, theft and vandalism. Costs varies from $9 - $20 per day.

2. Liability Insurance: Provides excess liability coverage to upto $1 million and costs $7- $9 per day.

3. Personal Accident Insurance: This insurance covers all the passengers in the car for medical expenses and costs $3 - $5 per day

4. Personal Effects Coverage: Ensures personal belongings of the travelers in the car and costs $2 - $5 per day

If your own insurance covers health and theft/loss of personal belongings then you won't need PAI (Personal Accident Insurance) or PEC (Personal Effects Coverage).

Similarly, Liability Insurance may already be covered under your car insurance.

Avoid the confusion and find out.
Rental car insurance can be tricky business. If you don't do your homework you may end up under-insuring yourself or paying for insurance that you already have. However, what type of insurance you need depends on the insurance you already have and your individual needs.

Before leaving for your trip, decide whether you need the coverage or not. If you do, check your car, home owner’s and travel insurance, as well as your credit card and find out if any of these cover rental cars.

An important thing to remember is that you don’t necessarily have to buy insurance from car rentals. If you’re still confused, ask your insurance company what kind of insurance you’d need to buy from the rental.

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