Do You Need Rental Car Insurance This Holiday Season?

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Thanksgiving weekend is the busiest time for travel. All those travelers will have to decide whether to purchase rental car insurance. Don’t make this decision at the rental counter. Learn what you need to know ahead of time to make a smart choice.

Thanksgiving is just a few weeks away, and Christmas will be following soon after. And for nearly 30% of Americans, that means it is time to plan a trip. Last year a predicted at 94.5 million people took to the roads and air to visit friends and family or take a much-needed vacation.

Does Your Car Insurance Cover Rentals?

Before you hit the road, take some time to figure out whether that rental car will be covered by your Michigan No-Fault Insurance. The time it takes to call your insurance provider could save you hundreds of dollars at the rental counter. Before you hit the road ask:

  • Am I Covered For Accidents In A Rental Car?
  • Am I Covered For Theft Or Damage To The Rental Car?
  • What Is My Deductible?
  • What Are My Coverage Limits?
  • Are There Any Regional Limits? (This Is Particularly Important For International Travelers.)
  • Will My Insurance Cover Injury To Others In A Rental-Car Accident?
  • What About Property Damage?
  • Will My Insurance Cover The Time The Rental Car Is In The Shop?

Many car insurance companies will provide coverage as you travel, but the terms and limitations will be specific to your policy. Keep in mind that the car you will be renting may be newer or more expensive than the one you are covering at home. If your coverage limits are low it may be a good idea to find something to supplement them.

Could You Have Rental Car Insurance From Your Credit Card?

When you put a card down on the vehicle, double-check the brand. Visa, MasterCard, American Express, and Discover all have some cards that carry supplemental rental insurance which kicks in after your car insurance runs out, or helps cover your deductible. But to qualify you have to say “No” to over-the-counter rental car insurance. Take a look at the coverage available on your cards and avoid buying insurance that will undercut what you already have.

Rental car insurance can be a life-saver for people who don’t otherwise carry insurance, or for whom the rental is a big upgrade. But before you let yourself be talked into an expensive rental insurance policy, do some research to find out if you need it. A few minutes could make a big difference in this year’s holiday budget.

David Christensen is a no-fault insurance expert at Christensen Law in Southfield, Michigan. He and his team are focused on helping injured motorists make the most of their insurance policies and getting them the recovery they need. If you or someone you know has been in a motor vehicle accident, contact Christensen Law today for a free consultation.