Why your Auto Insurance Policy may already have you Covered
In 2010, industry research firm Edmunds.com published the article “Confessions of a Rental Car Agent”, a detailed account of the organized chaos that permeates the rental car biz. Whether you are renting a vehicle for a cross country road trip, or picking one up from an airport kiosk for a weekend out of town, we at Texan Insurance have got the dirty little secrets you should know about before springing for rental car insurance.
The dirty little secret
The agent making his confession estimates that 60% of people renting cars purchase the optional insurance. What is most outrageous about that number is that in reality only 10% of those needed it.
Often times, the insurance is provided by a third party resulting in an incredibly high profit margin for the rental car agency. It is offered in the following four components:
- Collision damage waiver – covers damage to the vehicle
- Personal accident insurance – provides coverage for the driver and passengers
- Personal effects coverage – property coverage
- Supplemental liability – in the event of an accident will cover third parties
Some of this coverage is redundant. Personal accident insurance is typically bundled with the collision damage waiver even though pieces of the policy are already covered in the event of an accident.
How do the agents manage to upsell so much of this product? Each is trained to ask guided questions to determine what sort of individual is renting one of their vehicles. If they sense fear, the agent will move in offering extended insurance coverage.
Your Credit Card Might Have You Covered
Many major credit card companies offer rental car insurance to their cardholders. Credit cards such as Visa offer rental car collision-damage insurance, reimbursing you for the cash value of the vehicle damages. It is important to mention that this is only a secondary rental car insurance plan. Before relying completely on your credit card for rental car insurance coverage make sure to contact your credit card company to see if this benefit is currently available on your card.
Have no fear, you are probably already covered
If your current personal auto insurance policy already includes collision coverage, you are most likely covered for any sort of accidents sustained while driving a rental vehicle. It is worth noting that if you do decide to use your own auto policy you will be responsible for paying the deductible for any damage the vehicle may incur. Remember, you don’t have the option of declining to repair a dent.
Contact your Texan Insurance agent about adding collision coverage to your auto insurance policy.
Source – Confessions of a Rental Car Agent
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