If you have a personal auto coverage and you rent a car your existing auto policy will cover you in the rental car, but if you have an accident you will have to pay your normal deductible. The rental car companies make a LOT of money from selling really overpriced insurance and in general it's a good idea to just say no as long as you do have a personal auto policy. If you don't have a personal auto policy then you do need to get the rental insurance to at least have the legally required liability coverage. Many credit cards also provide you some rental car insurance for free, so check with your credit card company too.
Business Development Officer, T.D. McNeil Insurance Services, Fresno, California
When you rent a car you are responsible for any accident you might have with the car and are also responsible to return the car to the agency in the same condition as when you rented it. While the insurance offered by the rental company may be overpriced they do not do any of the underwriting and investigation of the driver that a normal insurance company will do. That makes their selection process less critical and their prices higher. The advantage of the insurance that they offer is that you can return the automobile or tell the company where the automobile is located and the insurance that you purchased from them will complete your contract with the rental company (that is not a legal opinion, just an observation.)
The coverage on your current automobile extends to a car that you have rented. If you have inadequate coverage on your private automobile you will have inadequate coverage on the rental car. If you are involved in an accident the rental company will try to “keep the meter” running on the rental agreement if you don’t have their insurance.
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The coverage on your current automobile extends to a car that you have rented. If you have inadequate coverage on your private automobile you will have inadequate coverage on the rental car. If you are involved in an accident the rental company will try to “keep the meter” running on the rental agreement if you don’t have their insurance.