Rental Car Insurance

This is a public service announcement. When you rent a car in the U.S., you should most likely pass on the rental car insurance they will try to sell you. I started passing on this coverage in my mid-twenties. At first it was because I figured it wasn’t very likely I would get in an accident for the few days I was on vacation. Yes, I’m cheap.

That turned out to be the wrong reason to skip coverage. One morning in Hawaii, I backed up into another car and dinged the bumper (it was raining). Bummer, right? I had passed on the rental insurance. Well, it turns out it wasn’t a big deal. I was already covered by my auto insurance from back home and by my credit card. I was doubled covered by insurance even after I passed on the rental coverage. In this case, I didn’t owe a dime.

If you pay with a credit card, and if you have auto insurance, do not pay for the rental car insurance in the U.S. Odds are you are already covered twice over. You might have to pay your deductible, but that would be the same if you got in an accident back home. Save your money and treat yourself to something else.

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