Should you purchase insurance at the rental car counter?

If you have ever rented a car, you probably dread the moment when the rental car agent asks if you want to purchase the insurance.

A lot of people don’t realize that their own auto policy may provide coverage if they have an accident in a rental car. Before you go, contact your insurance agent to find out exactly what your auto policy will cover.

Another coverage option? Some credit card companies will pay for damages to the rented vehicle after your personal insurance company pays, subject to your credit card’s contract provisions. However, this coverage usually does not extend to damages to another vehicle, theft of personal belongings in the vehicle or liability for bodily injury or property damage. Check with the credit card company you plan to use to pay for the rental car so you know what your options are.

The insurance coverage the rental car company offers to you is sometimes called a loss damage waiver, and it isn’t actually insurance. It relieves you of financial responsibility for the car if it is damaged or stolen. They also may offer additional liability coverage. Your own auto policy might have higher limits, so you may be paying for something you just don’t need.

Bottom line – find out how much coverage you have before you go the rental car counter. Find out what their deductible is and how much coverage their state-required liability provides. Weigh their coverage against your current coverage and the risk of your having an accident, then decide.

For more information, contact your local Shelter® Insurance agent:

• Whit Hensman – 2581 N. College Ave., Fayetteville; 479-443-WHIT or 888-999-9448

• Taylor Wethers – 1805 N. Green Acres Road, Fayetteville; 479-443-9700 or 877-248-4538

• JT Finley – 2142 N. College Ave., Fayetteville; 479-521-4220

• Randy Hutchinson – 1226 N. Garland Ave., Fayetteville; 479-444-3344