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 covers them. So, if you 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).
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), why do you need better protection when you are driving a rented car?
You don’t! 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! 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.
You are welcome to call 866-668-7179 or e-mail our law office to contact a professional who can help with your personal injury issues. If you cannot come to the office, we will come to your hospital room or home. We want to help you and your family through this.