One of the most common questions I receive is whether or not you should purchase auto insurance from the rental car companies.  Any time you rent a car, you’re going to get a sales pitch of a lifetime.  You’re going to hear all the reasons why you should buy insurance from the rental car company. There are a number of things that you should consider when deciding to buy or waive the insurance from a rental car company.  Choose wisely as your decision could end up costing you thousands of dollars!

Denver Car InsuranceThe good news is that your auto policy will normally extend to rental cars.  If you only carry liability coverage, then you will only have liability coverage when you drive a rental car.  Even if you do carry comprehensive and collision coverage; you may still owe the rental car company money after an accident.  Some rental car companies charge you the daily rental rate for every day the car is in the shop. Others charge a depreciated value – the difference that they could have sold the car for and the amount they actually sold the car for.Many credit card companies offer coverage if you rent the car on their credit card.  Look into this!

There are a few advantages to taking the coverage with the rental car companies…
  • If you get into an accident while driving a rental car – you can file a claim with the rental car company and your auto insurance rates may not be affected.
  • The rental car company won’t charge you depreciated value or rental car costs while the car is being fixed.
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