Renting a Car: Is It Worth It to Take Insurance from a Rental Company?
When renting a car, rental companies usually offer various insurance options to protect the customer from financial risks in case the vehicle is damaged or stolen. However, the need to purchase insurance directly from the rental company depends on several factors.
Firstly, many rental companies include in the base rental price mandatory liability insurance (analogous to MTPL) covering damage to third parties. Additionally, they may offer policies such as CDW (collision damage waiver) and TI (theft insurance), which limit the renter’s financial liability to a certain amount.
Second, the cost of insurance offered by the rental company may be higher compared to alternatives. Some third-party insurance companies offer deductible insurance policies, which may be more economical and provide similar coverage. However, in the event of damage to the car, the renter will first pay for the damage themselves and then seek reimbursement from their insurance company.
In addition, some credit cards provide insurance for rental cars as a bonus. However, the terms of such coverage may be limited, so it is important to check with the card issuer for details in advance.
Thus, the decision to purchase insurance from a rental company depends on individual circumstances, including the availability of personal insurance coverage, credit card terms and willingness to handle your own reimbursement. In any case, it is advisable to carefully review the rental and insurance terms and conditions to avoid unexpected costs.
