When you rent a car, what type of extra coverage do you take before you drive it off the lot?
When you rent a car you are usually given a few options on what to do to make sure the car is covered in case you are in an accident.
Use Your Own Insurance
If you have a good car insurance policy and proof of insurance on you, you may be able to use your own car insurance policy to take care of the coverage you need while you are using the rental car. If you consider his route you need to make sure you know just what your insurance policy covers and that the coverage you have is enough to take care of the requirements of the rental company
Use Their Insurance
In case you do not have the best insurance coverage, most rental companies do offer their own, for a price. They have either made an agreement with an insurance company, or are willing to take on the risk themselves and will allow you to purchase a waiver that will grant you coverage, just in case something happens while you are driving their vehicle.
The Third Option
For some people there is a third option, letting their credit card cover them.
Many credit cards actually offer a rental car insurance policy to cover you while you have a rental car. This is most common with travel rewards credit cards, but many regular credit card companies have extended the program beyond the travel rewards cards and offer it with all their cards.
In addition to just covering the basics if you are in a wreck, many of them have a full replacement value for the rental car company of up to $ 50,000. That means even if the car was total, you would probably have the coverage you need to pay for the damages without going broke. This also should kick in if the car were to be lost or stolen.
Many of the best credit cards these days also offer a little more for your money. They have 24/7 roadside assistance policies. This means if you are in your rental car in a strange town, and you break down, have a flat tire, or some other similar problem, they will come to your rescue and get you back where you need to be.
Not all cards have these services. If you are in the market for a new credit card, you should do research to see that the one you get is the best credit card deal around and will give you a few of the extras you deserve.