2 cases when buying collision-damage wavier from rental car companies makes sense

Even if you have insurance coverage for damage to a rental car under your Personal Auto policy , buying the collision-damage waiver coverage from the renal agency may be a good idea in two circumstances - first, when protecting your auto insurance rates and ,second, when renting for business.

First, if you file a claim for which you are responsible and your personal auto insurance policy is to pay for damage to a rental car, your rates will go from 20% to 25% for 3 years (the period of time most insurers surcharge rate for tickets and accidents). This is not going to happen if you purchase coverage from the rental agency. Plus if your driving record is already not “clean” filing another claim against your insurance may even lead to your company dropping your policy. So you may want to consider buying the coverage from the rental agency and saving your Personal Auto coverage as a backup.

Second, buying the rental agency’s coverage is a good idea when you are renting for business purposes and your employer pays off your expenses. Because you are using the rental car for your job, it is reasonable for your employer to pay for the insurance and any claim costs.

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