Pros and Cons of Purchasing Rental Car Insurance

Envision yourself on a plane with friends or family going on the vacation you’ve been dreaming of for months, maybe even years. You’re visiting the Great Lakes or honeymooning in Hawaii or Maine. You’re checking out national landmarks like the Grand Canyon or great cities like New York City or Chicago. Regardless of your destination, when you arrive at the rental car station, you will be asked to purchase additional rental insurance.

The question you will need to answer is, “Do I really need additional rental insurance?” The answer will depend on the situation.

Before you purchase any additional insurance, you should take the time to read all of the information or ask for a representative to explain it to you and answer your questions. You don’t want to sign up for something you do not fully understand or truly need.

Here are the pros and cons to purchasing rental car insurance!

The Pros

You Will Have Peace of Mind – Money can’t buy happiness, but sometimes it can give you peace of mind! If you choose to purchase rental car insurance, you can rest assured that any type of damage that occurs to the rented vehicle while it is in your possession will be covered. This includes accidents, scratches, hail damage, and any other types of damage that the vehicle might sustain during the rental period. Keep in mind, though, that it all depends on the type of coverage that you select.

It Covers Those Without Insurance – If you do not have any personal auto insurance and you rent a car for a trip, then rental car insurance is a must-have for you. It will provide coverage for you in the event of an accident and could reduce some out of pocket expenses, even if you do not have a regular insurance policy.

It Could Save You Money – Keep in mind that if your rental car needs any driving repairs and your personal car insurance does not cover towing, repairs, or any other costs, the rental company’s insurance may cover you in any such event.

The Cons

It Might Not Be Necessary – There are instances in which rental car insurance is not necessary. If you have comprehensive collision car insurance, your current policy might already provide adequate coverage in the event that you use a rental car. If that’s the case, purchasing additional rental car insurance may be a waste of money and totally unnecessary on your end. Check with your insurance agent first to see if you will be covered.

It Could Cost You More Than You Thought – As it goes with anything involving insurance, be sure to read the fine print of the car rental agreement. Some companies could try to slip in extra costs without telling you. If you are in a hurry or don’t truly understand what you’re signing up for, you could wind up paying more money that you would have originally thought.

Injured Parties May Not Be Properly Protected – Accidents happen, and you want to make sure that you and others involved are protected adequately. If you purchase rental car insurance and have no other car insurance available, you might be held responsible for the medical costs or damages that exceed the limits of your rental car insurance policy. Be aware of this before getting behind the wheel of a rented vehicle, with or without rental car insurance.

If you’re about to embark on a vacation and want to learn more about rental car insurance policies, don’t hesitate to call us! We will help you through any questions you might have! Just call us at 1-800-766-MMIC or visit us online at to learn more!