Decision of Uncertainty

Running head:   A Decision of Uncertainty

      A Decision of Uncertainty

      Alvin L Harris

      University of Phoenix-Little Rock


Decision:   To purchase or not to purchase rental insurance

I have been puzzling over this decision for quite some time, over the past three years I purchased rental car due to my car being damaged in an accident. I have had to use the rental car for an extended period of time. During this time the question has come up of whether or not to purchase insurance from the rental agency or use my own car insurance in its place. I gathered information from different sources in the car rental industry to help support my decision.


Before buying coverage from a rental agency or using your own car insurance, it’s wise to make certain that you have enough coverage to pay for costly repairs if you should happen to suffer an accident in a rental car. (, 2009)

When renting, familiarize yourself with all your insurance options. If you already have car insurance, call your agent and find out if there is enough coverage on your existing policy. Another option is to check your credit card company: many offer coverage when you charge the rental on their particular card. In either case, these two options may be cheaper than purchasing insurance at the counter. (, 2009)

The type of car insurance that is purchased, along with the deductibles, usually apply to car rentals as well. Assuming that collision coverage was purchased, the coverage will apply to any car that you drive. However, many auto insurance policies say that your collision insurance is “excess” to any other coverage, meaning that any coverage you buy from the rental car company kicks in first. Also, your personal coverage requires you to pay a deductible before the insurance company picks up the tab. The deductible can be $250 to $500 dollars depending on the type of insurance that you have. (,...