Car insurance on a rental car can be a very confusing issue, there are many people who want to rent a car when they are in another city but are not sure about car insurance on that rental car. No matter whether it is your own car or a rental car, car insurance is an extremely important issue, in fact car insurance really is a mandatory item.
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There are really two fundamental reasons why you need to have car insurance. Firstly you need car insurance in the event of an accident resulting in a collision and also total loss of the car as a result of a hijacking or car theft. This is also true as far as rental cars are concerned because as soon as you get behind the wheel of a rental car or your own car, you automatically expose yourself to potential risk.
The second fundamental reason that you need car insurance is based on liability. Liability occurs when a third party is killed or injured as a result of an accident or incident that is ultimately your fault. In the grand scheme of things liability is far more serious than a collision or theft. This is because if you are liable for the injuries or death of a third party you are then open to being sued for damages. There have been many occasions when the costs of a liable lawsuit have financially ruined the person liable. This can also happen if you rent a car and are liable in the event of an accident.
In some cases the car rental company will not rent or lease a car to you if you do not take additional rental car insurance with them. It is vital that you check with your regular car insurance provider and make sure that there already is a clause in place that protects you in a rental car situation. Then you don’t need additional rental car insurance. This is also true for certain credit cards which will protect you when you pay for the rental of the car.