Come Prepped With Insurance
If you have car insurance, it probably covers rental cars too. However, you may need proof of it. “It’s kind of a pain in the neck, but make a copy of your insurance agreement and highlight the portion that speaks to car rental,” says Goldman. To truly make sure you’re covered, call your insurance agency and ask if your comprehensive and liability insurance is extend to rental cars.
There are some scenarios, though, where you need extra insurance. If you’re renting a premium car like a Corvette or luxury SUV, but normally drive a Hyundai, your coverage may not be adequate to cover potentially higher costs of a mishap. Consider buying coverage either from a third party vendor, your own insurance company, or (last resort, since it’s usually the most expensive) the rental agency.
Similarly, if you don’t own a car at all, you’ll need to purchase insurance. Sites like AutoRentals.com offer insurance through a third-party, which at roughly $9 per day, is cheaper than doing it on-site with a rental agency.
The collision damage waiver — or coverage that waives liability if you damage the car — will be pushed the hardest, and is only needed if you don't have your own insurance. Also watch out for something called personal accident insurance. This covers your medical bills if you’re in an accident in a rental car. If you have health insurance, this is a waste of money. One last tip: Some credit card companies offer rental car insurance to members. Call your credit card company to see if yours comes with any protection.