What type of insurance should I take from the rental car company when renting a car?

Rental cars make life easier when traveling, since you aren’t dependent on taxis and public transportation when you go on vacation or travel for business meetings. One thing to keep in mind when you’re traveling to Matthews, NC is that any insurance coverage on the rental vehicle must adhere to North Carolina’s state minimum insurance coverage. This includes a minimum of $60,000 to cover injuries, $25,000 for property coverage, and you also need uninsured motorist coverage.

Rental car companies offer to insure your car when you pick it up. The rental car insurance may be a flat fee for your entire rental period, or charged on a per day basis. Before taking them up on their offer, look at your own auto insurance policy.

Your auto insurance usually extends to rental vehicles, so you may not need to purchase separate rental car insurance. Confirm that you meet the state minimum standards with your policy before choosing to forgo the rental company’s offer, however. Another rental car insurance option is to pay with a credit card that offers this type of insurance. Credit card based rental car insurance comes in two forms: primary and secondary. Primary coverage acts as full automobile coverage for the rental vehicle, while secondary supplements your existing car insurance by paying your deductible if you get in an accident. Examine the terms of a credit card based insurance option carefully to ensure you’re properly covered.

Keep loss of use costs in mind when deciding whether or not to select the rental company’s insurance. Loss of use is a cost that the company charges to cover the time period it takes to repair or replace the rental vehicle. This is not typically a cost covered by regular auto insurance, but it is by the rental company’s insurance option.