Are Car Rental Companies Selling You Too Much Insurance?
We've all been there. We're at the car rental counter, and the agent starts pressing us on whether we want to purchase 'collision damage waiver' and other extra insurance (usually at $9.95 a day. We can assume that the rental companies are pushing this coverage to increase their bottom line. But is this something we need?
What a lot of people don't know is that when driving a rented car, the insurance on their own family car back home, covers them. So, unless you do not own a car, there is no reason to purchase coverage from the rental company in order to have the same protection as when you are driving at home (subject to the different laws of another state).
So if you are willing to drive around every day with a $500 deductible on your collision coverage (which means that if your car is damaged, your company will only pay for damages above the first $500- which you are responsible for). So why do you need better protection when you are driving a rented car than when you are driving your own?
You don't! Think about it. If you rented a car every day for an entire year, you would be paying over $3,500 (at $9.95 a day) to protect yourself against having to pay your collision deductible. With a $500 deductible, you would have to have 7 collision claims in that year to justify purchasing the coverage (with a $1,000 deductible, it would be more than 3)! It really doesn't make sense to buy it.
And while we're on the subject, don't buy the entire tank of gas up front. Every gallon of gas in the car when you return it is a gift to Hertz, Avis or whatever rental company you use. You're better off in the long run to take the hit, on the rare occasion you are in too much of a rush to fill the tank before you return it.
Support When You Need It Most
Contact us to schedule a consultation after a car crash, workplace accident, or other severe injury. Jacobs & Jacobs, P.C. has been representing injury victims in Connecticut since 1950. Our New Haven lawyers welcome the opportunity to help you learn how to get the most from your insurance policies after an accident.
