Should you buy insurance from a rental car company?

One of the most common questions our agency receive is whether or not you should purchase auto insurance from the rental car companies.  There are several things to consider when deciding to buy or waive the rental car insurance.  Your policy with Farmers Insurance  does extend to rental cars.   That being said, it is important to remember you need to carry comprehensive and collision coverage in order for the rental car to be covered.
  • Even if you do carry comprehensive and collision coverage – you may still owe the rental car company money after an accident.  Some companies charge you the daily rental rate for every day the car is in the shop.  Others charge a depreciated value – the difference that they could have sold the car for and the amount they actually sold the car for.
  • Many credit card companies offer coverage if you rent the car on their credit card.  Look into this!
There are a few advantages to taking the coverage with the rental car companies…
  • If you get into an accident while driving a rental car – you can file a claim with the rental car company and your auto insurance rates may not be affected.
  • The rental car company won’t charge you depreciated value or rental car costs while the car is being fixed.

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