Do I Need Rental Car Insurance?

Paying too much for car insurance?

We’ve all been there, you’re on vacation and the only thing between you and the beach is getting your rental car. The desk agent talks about filling up the gas tank, and then asks the dreaded question, “Do you want to buy the insurance?” Do you need it? What does it protect you from? Doesn’t your current insurance company cover rental cars? 

If you have Erie insurance, you’re in luck, because Erie insurance auto policies provide automatic coverage when you rent a vehicle. Each insurance company handles rental cars differently so you will want to check out your policy to see if your company provides coverage, but with Erie insurance you are covered. With Erie it doesn’t matter if it’s through Enterprise, Hertz, Budget, or even Turo, you have coverage whenever you rent a car. 

Even though your insurance company may provide coverage for rental cars, there are still some pros, and cons to accepting it or denying it. It is ultimately your decision and hopefully this article helps you decide what’s the best option for you.

Advantages to Declining Coverage

The advantage to declining it is that you save some money! With your Erie insurance auto policy, you automatically have the coverage, so you don’t need to spend the extra money for the rental car insurance. If you would get in an accident, you are subject to your deductible, just like you would be driving your current car. You simply call your insurance agent, no matter where you are in the country, and report the claim. After paying your deductible, the car will be fixed just like it was if it was your own car on your Erie insurance auto policy.

Disadvantages to Declining Coverage

There are disadvantages to denying their coverage, even if you have Erie insurance or another company that provides coverage. One of the biggest risks is the “Loss of Use” charge. Loss of use is not covered by an Erie Insurance auto policy. Loss of use, refers to the amount of time that their car is in the shop being repaired and they are unable to rent it. If they are able to rent the car for $150 /day and the car needs to be in the shop for 5 days for the repair, they will send you a bill for $750. This bill comes unexpectedly to most people and can be completely avoided by purchasing the rental company’s insurance. 

Before you get to the rental counter make sure that you understand the pros, and cons to denying or accepting their insurance. You may even want to read the fine print in the rental contract. Each rental company handles insurance differently so call you local Erie Insurance agent for advice before heading to the airport.

Next time they ask you the question, “Do you want to buy the insurance?” you can say with confidence, “No, it’s all good, I have Erie insurance,” or, “Yes, please. I know the risks that I face. I would like to purchase your insurance”. 

If you have any questions or want a quote from Erie insurance, call us at (717) 290-7780, or check us out www.susquehannains.com. We’re in Lancaster PA, and also in Lititz PA. We’re happy to help answer any questions about Erie rental car coverage or your Erie policy in general. Let us help you purchase smarter insurance with confidence!

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