When you rent a car, you will be offered additional coverage by the rental car company. It may be their last attempt to get more money from you. They may or not offer real rental car insurance. If you rent a car frequently, you already know how to say no. But if you rent a car for the first time, you better knowing what kind of coverage which they offer.

It May Not Be an Insurance

In some states, the coverage serve as an agreement between you as the renter and the rental car company. The agreement says that you will not responsible if you make damages to the car. It will protect you when you are involved in an accident. This coverage is called collision damage waiver. In case you get into an accident with your rental car, the coverage will pay the repair cost. In addition, it will covers the cost of not being able to rent out the car due to repair. Moreover, it also cover if your rental car is stolen. When you are offered the collision damage waiver, ask the rental car company about it, what will be covered and what amount of dollar it will cover up to. Despite the coverage may sound like rental car insurance, it may not technically be a car insurance.

Between Your Car and the Rental Car

Your insurance company will cover you when you are driving a rental car, of course it depends on your plan. However, the extent of coverage will be different when compared with driving your own car. Your insurance company will pay for all damage to the rental car if you're involved in an accident, but you will pay the loss since the rental car company can not rent out the car. Your insurance company typically will not cover for these kind of costs. 

Remember, your car insurance's rates may go higher if you are in an accident with the rental car using your insurance plan. You have to pay higher deductible before your insurance company pay their share, since the insurance company may not cover the rented car with the same deductible as your own car. If you choose the collision damage waiver, your rates may not increase but the company may not have to make any payments. 

Get Additional Coverage

How to get additional coverage if you don't want to purchase rental car insurance? Renting a car with your credit card. Several credit card companies have extension rental car insurance coverage in your policy. It will be different from what your insurance company offer, so you need to find out what your credit card covers. 

If you travel abroad, don't be surprised if several countries require you to buy the additional coverage. Some of them even require you to purchase theft coverage. Before your travel, it will be better to consult your insurance company about the collision damage waiver regarding your rental car. With those information, you might save some extra money for your trip.