Rental car insurance, is it worth it?

SEATTLE -- Tis the season for holiday travel, and often that means spending money on rental cars. Unexpected costs like mileage caps, and insurance can increase the price dramatically.

You might think skipping on the insurance will save you some cash. After all, you already have auto insurance for your own car and some credit cards used to book and pay for the reservation claim to provide insurance as well.

Q13 FOX asked the experts at PEMCO Insurance, is it worth it to buy rental car insurance?

"Yes, I would think its worth it to make sure and ensure you have coverage," Craig Kehrberg, a product manager at PEMCO said. "You do have coverage through your normal insurance when you do rent a car. But, if you get into an accident there are extra claims, extra costs that a rental car company might charge that is not included in your insurance policy."

Kehrberg said those extra costs are loss of use, diminished value and administrative fees:

  • Loss of use: rental companies can charge you a loss of use fee for everyday the rental is being repaired and unavailable to rent.
  •  Diminished value: after a wreck, a car isn't usually worth as much as it was before. A rental company can charge you the difference.
  • And then there are those vague administrative fees.

If your personal auto insurance doesn't cover these three things, then yes, it is worth it to buy the rental car insurance.