Car Rental Insurance: To Pay or Not To Pay?

Isn’t car rental insurance grossly overpriced, and can’t money be saved by booking with a credit card that provides insurance on vehicles rented with that card?

Yes and yes.

Sort of.

Car rental companies do make substantial profits by charging elevated rates for insurance, and it is possible to waive the insurance coverage when picking up your car (though some companies have stopped this practice), but I only recommend doing it in certain circumstances.

Vehicles rented in the United States should fall under your personal insurance policy.  Check with your insurance carrier before booking, and if you’re covered, then by all means decline the insurance offered by the rental car firm.  If you don’t you’ll simply be wasting money on useless coverage.

Many credit cards also offer primary insurance (if the card is used to book the vehicle) on cars rented in the United States.  Call your card company for details.

The rules change when you go to Europe. Continue reading