The next time you go on a trip, whether for business or pleasure, you may want to reconsider how to answer the clerk at the rental car company when he asks if you’d like to take advantage of the insurance policy their company offers.

Many people don’t realize that by taking the rental company’s insurance, they are throwing their money away. “How could that be?” you ask. “Don’t I need insurance to drive?”

Yes, of course you do, but you’re likely already covered under your existing personal auto insurance policy. Many insurance companies do provide coverage for a vehicle rented by one of their insured against theft or damages.

If you’re not sure what kind of coverage your plan offers, inquire before leaving on your trip. You may be delighted to discover that your auto insurance coverage is a lot more extensive than you thought it was.

Many policies will offer the same level of coverage you have on your own vehicles for a rental car: liability insurance, comprehensive and collision coverage, medical, uninsured motorist and even towing, to name a few. Therefore, you may be buying coverage for insurance you already have.

Rental car insurance is primarily intended for drivers who don’t currently have an auto insurance policy of their own. According to the article titled “Should you pay for rent-a-car insurance?” written by the Associated Press, here’s a breakdown of the rental car insurance coverages available:

* Liability insurance – Provides up to $1 million worth of protection at a cost of between $7 and $14 a day.

* Personal accident insurance – Covers medical and ambulance bills for the driver and passengers in the event of an accident. Opting for this would cost an additional $1 to $5 per day.

* Personal effects coverage – This protects against theft of items in the vehicle, such as wallets, electronics and sports equipment. The coverage generally costs between $1 and $4 a day.

* Collision waiver – This is not actually an insurance product, but an optional waiver you can select that will shift liability for vehicle damage from the person driving the car to the rental car company. Waivers, however, will become null and void if the accident was caused by driving illegally or on unpaved roads.

If you know you’ll be traveling often for business or leisure, be sure to inquire about rental car coverage when you secure car insurance quotes. Knowing how you’ll handle rental car coverage before you head up to the counter will save you a lot of money in the long run.

Courtesy of ARAcontent