Discover the hidden secrets to slashing rental car insurance costs and drive off into the sunset with extra cash in hand!
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Renting a car can be a convenient way to get around, whether you're traveling for business or pleasure. However, one thing that can add up quickly is the cost of rental car insurance. To help you save money on this expense, here are some friendly tips for cutting costs on rental car insurance:
Understand Your Coverage Needs
Before you even step foot into the rental car office, take the time to understand your coverage needs. Review your current car insurance policy to see what types of coverage are already included. This will help you determine what additional coverage you may need when renting a car. By knowing exactly what you're already covered for, you can avoid paying for duplicate insurance.
Check with Your Credit Card Company
Your trusty credit card may hold the key to saving money on rental car insurance. Many credit card companies offer rental car insurance as a perk for cardholders.
As we’ve written in a previous post, some elite or premium cards automatically provide insurance when you use them to book your rental car. Be sure to check with your credit card company to see if this benefit applies to you.
Understanding the coverage details and any restrictions can help you make an informed decision when declining insurance from the rental company. Do your due diligence on the benefits and disadvantages of credit card rental car insurance to make sure you’re getting the best coverage for your needs.
Compare Rental Car Insurance Options
It's always a good idea to shop around when it comes to insurance, and rental car insurance is no exception. Compare quotes from different rental car companies to find the best price for coverage.
Don't assume that the insurance offered by the rental company is your only option. You may be able to find a more affordable option elsewhere. For instance, you can compare the cost of the collision damage waiver with a third-party insurance provider (eg. Bonzah’s damage coverage). Comparing quotes from various providers can help you find the most cost-effective solution tailored to your needs.
In addition to price, consider the extent of coverage each option offers. Be sure to understand what is included and any potential limitations or exclusions. It's also important to factor in your driving habits and risk tolerance when choosing a policy.
Read this if you want to compare the pros and cons of different rental car insurance option
Consider a Non-Owned Auto Liability Policy
If you find yourself renting cars frequently, it might be worth looking into purchasing a non-owned auto liability policy. This type of policy can provide coverage for rental cars as well as other non-owned vehicles you may drive. By investing in this type of coverage, you can save money in the long run by avoiding costly insurance fees from rental companies.
Of course, you should do well to remember that a non-owned auto liability policy only covers liability claims, which happens when you accidentally damage another person’s car or property. This can leave you vulnerable to financial obligations for physical damage to your own rented or borrowed vehicle.
Another thing to check is the policy limit. Non-Owned Auto Liability Policies often have lower coverage limits compared to traditional auto insurance policies. This potentially leaves you underinsured in the event of a major accident.
So while having a non-owned auto liability policy can be beneficial if you frequently rent vehicles for business or personal use, you should ensure that you know your coverage well to be fully protected.
Opt for a Higher Deductible
If you're comfortable taking on more risk, opting for a higher deductible can help lower the cost of rental car insurance. By choosing a higher deductible, you can reduce your monthly insurance premium. Just make sure you have enough savings set aside to cover the deductible in case of an accident. Choosing a higher deductible can be a smart way to save money on insurance without sacrificing coverage.
By following these friendly tips for cutting costs on rental car insurance, you can drive away with savings and enjoy your rental car experience without breaking the bank.