If you intend renting a car, then there are a number of hidden term and conditions that you will need to know before picking. Often times people rely on their credit card, even though it’s only a secondary source of insurance which means renter will need to claim on their auto-policy first in case of an accident, which could leave the renter with a sizable deductible to pay and also risk increasing the auto-insurance premium up to 44% as a result of the claim.
The full peace of mind option is the CDW (Collision Damage Waiver) direct from the rental company, however the cost for such cover (between $30-$40) is akin to extortion, and hence a real point of friction between the renter and the rental company. You can avoid purchasing liability insurance, by simply checking your home, tenant, auto or umbrella liability policy that generally covers a lot more than just the rental car.
Third-party rental car insurance options from companies such as Bonzah.com, should also be considered given they are far cheaper than the rental company CDW, and unlike credit cards, they are a primary insurance policy which helps you avoid claiming on your auto insurance policy and incurring a deductible and possible premium hike. The blog 9 Nasty Truths About Car Rental Insurance share very important points that will help you to know more about rental car insurance facts and save your money.