Should You Get Extra Auto Insurance When Driving a Rented Car?
Drivers renting an automobile in Albuquerque often feel conflicted about accepting additional insurance at the rental agency every time they decide to rent a car. Drivers who have a valid automobile insurance policy in place on their own personal vehicle at the time they rent an automobile may have a certain amount of coverage included that will compensate for physical damages to a rented vehicle. Check your current personal auto policy to see if your coverage extends to any “non-owned auto” that is operated by you but not actually owned by you, which fits the definition of a rental automobile.
Additional Collision and Comprehensive Insurance Coverage
Drivers who only carry the minimum amount of liability coverage mandated by New Mexico law and do not carry the optional collision and comprehensive insurance policies would not be covered for any physical damage to the rental automobile that you sustain while it is in your care or you are in the process of driving it. If you rent cars frequently in Albuquerque, and already have your own personal auto insurance policy, it might be more economical to accept additional collision and comprehensive insurance coverage so that your rental car can be covered in the event it is damaged by being hit by another vehicle, rolling over, or hit by another moving object such as a wind-blown tree branch.
Car Rental Insurance and Optional Coverage
Car rental insurance can also refer to optional coverage on your car’s personal automobile insurance policy that covers the cost of renting a vehicle while the vehicle you own is undergoing repairs due to damage that is covered by the conditions of your policy. If you do not own a second car and your primary vehicle is put out of commission after an accident, it could cost you hundreds of dollars out of your own pocket in order to rent another vehicle while your accident-damaged car is being worked on in the shop.
Auto Insurance Policy with Car Rental Insurance – Small Price, Big Benefits
Car rental insurance as part of your personal auto insurance policy usually costs very little but can pay off big in the event your car is temporarily out of commission just once due to accident or other damage covered by your insurance policy. When selecting rental insurance as one of your additional options, pay attention to the amount per day that your policy covers in addition to the total amount covered. A policy, for instance, may cover 30/900, which translates up to $30 a day to rent a car up to a total of $900 or 30 days. Some insurance carriers automatically include a minimal amount of rental insurance in each policy as an added benefit, but check with your insurance provider to determine the limits of this coverage and if it may be worth your while to invest in more extended rental insurance coverage at a cost of only a few extra dollars in premiums per month.