5 Reasons To Purchase Collision Damage Coverage When Renting A Car

Posted on: 16 December 2016

When you rent a vehicle, you are going to have the option to purchase collision damage coverage with it. However, many people see this as a waste of money and decide not to purchase it. Here are five reasons why you shouldn't do this:

  1. You Won't Pay Out of Pocket for Total Loss: If you are solely relying on your auto insurance to provide coverage for your rental car and you are in an accident, you are only going to receive coverage for the cash value of the vehicle. The rental company will expect for you to pay full value for the vehicle in the event of a total loss from the accident. The full value of the vehicle can be very different from the actual cash value of the vehicle. 
  2. You Will Have to Pay Right Away: Your rental company is going to expect payment for the damages right away. Your insurance isn't going to provide payment for the damages until the car is evaluated by an auto body repair shop and even still it can take weeks to process. This means you have to pay out of pocket right away, which you might not be able to afford even if your car insurance company compensates you later. When you purchase collision coverage through the rental company, you don't have to worry about this. 
  3. There's No Deductible: Collision coverage through the rental company will not have a deductible, which means you are not paying out of pocket at all. With your car insurance company, you are going to be responsible for a certain amount until your insurance will agree to provide coverage. 
  4. The Vehicle May be Excluded:  If you are renting a specialty vehicle, such as a motorhome, motorcycle, or truck, then your auto insurance may not provide coverage at all. You will need to look into this to determine if your auto insurance company excludes certain types of vehicles from the rental car coverage on your policy. 
  5. You Don't Have to File a Claim: If you are in an accident with your rental car and you purchased collision damage coverage, you won't have to file a claim with your auto insurance policy. This ensures that you don't have to worry about the accident ruining your driving record, which will lead to higher insurance rates. 

When you know these five reasons to purchase collision damage coverage when renting a car, you can see why it's worth the additional cost in the end. Click here for additional reading about the costs you may be expected to handle in an auto emergency.