There had been a lot of controversy regarding the rationality of rental car insurance. There are many criticisms that are thrown against rental car insurance which makes individuals to wonder whether the insurance policies that they are paying when they rent cars are beneficial or not. Although there are existing claims that rental car insurance is beneficial, it is still difficult to conclude whether paying for this is rational or not. In order to help you weigh things up, this article provides some of the pros and cons of rental car insurance.
Rental car insurance pros
- Rental car insurance provides you with the safety when driving a rented car. The insurance involved in this situation is short term but this is enough to prevent you from experiencing financial ruin in the event of accidents.
- Rental car insurance is also important for drivers who are not covered by any insurance policy. As a matter of fact foreign drivers, frequent travellers, and accident prone drivers are required to obtain rental car insurance most especially the Collision Damage Waiver (CDW) for this could benefit them in case of accidents.
Rental car insurance cons
- Rental car insurance makes the price of renting a car more expensive. This is because most car rental companies charge their customers with extra fees for the insurance policies that they offer such as liability insurance, personal accident insurance, and accidental death coverage. These charges could possibly double the price of renting a car for each day.
- The fees and charges collected by car rental companies from their customers usually goes to their profits since most car insurance companies extend their coverage to rented vehicles. This simply means that the vehicle is already insured even if you are not charged with car rental insurance.
