Understanding The Need For Additional Car Renters Insurance
When planning a vacation, one common piece of advice heard when planning your trip is is not to pay for the supplemental insurance when renting a car from an agency. Typically, the credit card used to rent the car will provide rental insurance, and the coverage you have on your own car will cover the rental as well. Before deciding not to take the supplemental insurance, however, you should take into consideration what the deductibles are for your existing coverage, as well as your coverage limits.
When you rent a car, you assume responsibility for all damages to the car, even minor damages such as scratches, dings or dents. Through no fault of your own the car could get damaged, while you are parked in a garage and nowhere near the vehicle, but you are still liable based on the terms of the rental agreement.
If the cost to repair the minor damage is too small, it could be the case that your credit card company and personal car insurance would not cover the costs. Even if you report that damage to the police and insurance company immediately, it is quiet possible that the insurance company could bill you for the damage after you thought everything was taken care of.
The average cost of minor exterior damage to a car is under $1000. If your credit card or car insurance companies will not cover this cost you are legally obligated to pay out of pocket. When comparing that expense to the cost of supplemental car insurance, which can be as little as $10 a day, the supplemental insurance may provide peace of mind while you are traveling.
Sure $1000 is not that much, but when compared to the $50-$80 the insurance would have cost you up front, it can provide you with a significant savings in the long run. Now after reading this, you may still wish to take your chances with the coverage that you have and may choose to waive that extra insurance, but for the amount of hassle, aggravation and paperwork that this process could cost you purchasing that extra insurance really seems to be the best overall option.
Budget Rent a Car is a great place to check out when you are shopping for a Coolangatta car hire. To start shopping for your rental vehicle go to www.budget.com.au.
