Dropping Car Coverage Can Affect Rental Car Costs

rental car insurance

Finance gurus will tell you that you should drop the “Comprehensive and Collision” coverage on your auto insurance once the value of your car drops to the point that the insurer would automatically total your car in the event of any accident. The thinking goes that you shouldn’t waste the money on the premium when any money you get as a result of the accident will only be a few hundred dollars. In other words, the premium you’ll pay to maintain comprehensive and collision will be more than any settlement you would receive.

This is somewhat sound advice and the reasoning behind it is true. Why not cut your insurance bill if you have the chance and if doing so won̵


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2 Responses to Dropping Car Coverage Can Affect Rental Car Costs

  1. eemusings says:

    Interesting! I’ve never heard of car insurance policies in NZ also being extended to / available for rentals. We sucked it up and paid the hefty daily insurance when we rented a campervan last year (worth the peace of mind!) but when we road tripped the US recently we found a deal that included full insurance with no excess. Bargain.

  2. Alexandria says:

    Is it really necessary to get full C&C coverage for a car rental?

    We have been getting “Unlimited Non-Owned Car Coverage (UNOC)” coverage for when we travel. The cost is about $5 per month, so we only paid $1.25 or so for a week of coverage last time we traveled. Which is perfect for us because on average we only rent a car about one week out of every 2 years.

    We had heard a tip to actually use American Express and to sign up for their coverage ($25 up front or something like that??). But, it did not cover “Loss of Use” charges from the rental companies, which can be significant. UNOC seemed to be better coverage and better value. (To be fair, we have C&C coverage at current, so I did not look into it as anything more than a supplement. Something we should maybe check next time – most the time we do not have C&C coverage because we tend to drive older cars – just happen to have an 8-year-old vehicle right now which is still worth a fair amount).

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