Should I Purchase Rental Car Insurance?

If you have ever rented a car, you have more than likely encountered assertive counter agents warning you about the possible expensive and dire consequences if you do not purchase their particular rental car insurance. This can oftentimes feel confusing for some renters because they may not know what type of insurance they have, and this is beneficial for rental car agencies because they make commission if they sell you their coverage. If you are interested in learning more about types of insurance coverage for rental car agencies in Willmar, Minnesota, MG Insurance Inc. can help. Continue reading to better understand if your auto insurance is sufficient, or if it is necessary to purchase rental car insurance.

How Does Rental Car Insurance Work?

Rental car insurance is a supplemental option that you can buy when renting a car to help protect you if you are involved in an accident. The cost of car rental insurance will vary by policy, but will usually cost anywhere between $30-$60 per day. It typically covers the following:

• Collision damage waiver – This covers damage to an automobile during a collision or theft of a vehicle. It is important to note that this isn’t technically insurance, but rather, a waiver stating that the rental car agency will not hold you liable for all of the damage. If you are found to be at fault because of carelessness, you can still be held accountable for loss of use of the vehicle.
• Personal accident insurance – This covers medical expenses if you and your passengers are injured in an accident.
• Supplemental liability insurance – This coverage protects you if you damage someone else’s automobile or their property while driving the rental car.
• Personal effects coverage – This reimburses you for any of your personal property that is stolen from your rental car.

When Do I Need Rental Insurance?

You are not required to have your own auto insurance policy in order to rent a car, however, most rental agencies do require a minimum amount of coverage on their vehicles. If you do not have auto insurance, you could be liable for costly expenses if you are in an accident in a rental car. In most situations, your own auto insurance policy will provide adequate coverage, however, you may opt to buy a policy from a third party or from the rental agency itself instead. Before you rent a vehicle, you will want to review your current auto insurance policy with your agent to confirm what your policy will and will not cover, and what the deductible is. If you are going to be renting a car soon in the area of Willmar, Minnesota, you will want to ensure that you are protected in the event of an accident. Contact MG Insurance Inc. today to review your current auto insurance policy so you can enjoy your next trip.