ILR cars offer tremendous convenience. Whether you need a vehicle to help you explore a vacation destination or get you to an important business meeting, or you just need a loaner while you hunt for the perfect new car, a rental can be a lifesaver. The downside to renting a car is that it can wind up being a lot more expensive than your budget allows. Here are some costly car rental mistakes to avoid:
1. Purchasing unnecessary insurance
Insurance serves a valuable purpose, and it can protect you if catastrophe strikes. However, doubling up on your coverage won’t add any extra benefits, and this is often what happens for many people who rent cars and purchase insurance coverage at the rental car counter.
If you have insurance coverage for your personal vehicle, your policy may provide protection during your time spent behind the wheel of a rental car. It’s important to understand exactly what type of coverage your personal vehicle’s insurance policy provides. It can provide coverage in three key areas:
Liability coverage
- If you cause an accident while driving, liability coverage helps to pay for the other party’s medical bills and property damage.
- You legally have to have liability coverage in every U.S. state (except New Hampshire), so check your state’s minimum coverage requirements to stay compliant.
Comprehensive coverage
- Comprehensive coverage helps pay for damage or loss due to perils such as theft, wind and fire.
Collision coverage
- If you have a collision with another vehicle or an object such as a tree or a gate, collision coverage helps pay for the repairs.
Before paying for the insurance offered by rental car companies, check with your insurance agent to see if the adventures in your rental vehicle will be covered.
It’s also important to remember that certain credit cards offer insurance coverage if you use the card to pay for your car rental. However, sometimes this is just secondary coverage, which means it applies only to expenses not covered by your personal auto insurance policy or the rental car company’s policy. Call your credit card company before you rent to get a clear sense of what kind of coverage is provided.