Check your personal car insurance policy before purchasing car rental insurance. Many drivers are protected through their personal policy, if the car rental is for pleasure. Older cars may have less-than-adequate insurance for rental cars. Charge card holders may also have a clause that covers rental cars, as most car rental companies require a credit card to hold a rental reservation. Coverage will vary based on the card and bank issuing the card.
If you need car rental insurance, ask the company about its options. Car rental insurance may include a collision damage waiver or loss damage waiver, which excuses the renter from car damage caused by an accident, vandalism or theft. This insurance ranges from $9 to $20 a day. Supplemental liability insurance can provide up to $1 million worth of coverage on the rental vehicle, and costs about $7 to $9 a day.
Personal accident insurance covers all passengers in the car for any medical expenses from an accident. This insurance, which ranges from about $3 to $5 a day, isn't needed if you have an individual health insurance policy. Personal effects coverage covers any damage to or theft of personal items in the rental car, and costs from $2 to $5 a day. Rental companies may combine these options into rental insurance packages.
You should purchase car rental insurance if personal car insurance does not cover rental vehicles adequately or at all. When traveling outside the country---to Mexico, for example--- personal car insurance or credit card options are a better option. Mexico's courts will not recognize foreign insurance issued by rental car insurance companies.
