Evaluating the Need for Car Rental Insurance

Obtaining insurance for a rental vehicle is probably not top of mind for most consumers. However, many become fully aware when they discover that in some instances, rental insurance can cost as much as actually renting the vehicle.

But is that rental car coverage really a necessity? It's often an unnecessary purchase, according to Cathy Lewis, MetLife Auto & Home's National Rental Coordinator. She says that a rental vehicle used on vacation qualifies as a 'non-owned automobile' under most personal auto policies, meaning that consumers' own vehicle coverage carries over to any vehicle that they rent. If the auto policy doesn't provide coverage, a credit card might.

Most credit card companies commonly provide insurance protection for rental cars, if the full amount of the rental is charged to the card. This is generally called "secondary" insurance, because it will only pay when one's personal auto policy does not. Consumers should always check with their creditors to understand the services provided, and the coverage limitations. Either way, there are times when additional insurance coverage may come in handy.

The key is to consider how the level of protection "stacks up" against the protection the rental car company is offering. When making the decision to purchase rental insurance, it's important to consider the need for collision damage waivers.

With a collision damage waiver, the rental company agrees not to hold the renter responsible for accidental damage or loss, as long as the conditions of the contract aren't violated. If it's determined that any damage would be covered under an insurance policy or credit card, it's safe to waive the waiver.

In addition, in some states, "partial collision damage waiver" is offered, which will cover the cost of any deductible that the automobile policy contains. Personal auto policies already provide liability insurance in the event someone is injured in an accident.

Whether or not additional coverage is necessary depends on the consumer's level of comfort, but keep in mind that if the state where the accident occurs requires higher minimum limits than what a consumer's personal policy affords, auto insurers are legally required to provide that state's minimum level of coverage.

In all cases, the best bet for consumers is to place a quick call to his or her insurance carrier or local agent before leaving on vacation. For more information, visit http://www.metlife.com/.