One of the things that people often get uncertain with about car rental companies is insurance. All car rental companies around the world offer various insurance waivers for their cars and they usually insist clients on getting insurance all the time. It's quite understandable, since these companies are for-profit businesses that want to generate income any way they can, so they will offer extra services to get more money from you. But is the insurance offered by car rental companies really that necessary? And what happens if you don't get any insurance at all?

Car owners know that car insurance is mandatory in nearly all countries over the world. Driving a car without a valid insurance policy usually results with fines, penalties and other legal punishments. So it's easy to assume that if you don't get insurance for a rental car, you will be driving it illegally. Well, it would be so if it were the actual car insurance that was lacking. The truth is that all cars offered by all car rental companies are always insured according to local requirements, otherwise it would be impossible to rent a car. Rental companies have to carry at least basic insurance for their entire fleet of cars, it's a part of their operational costs, so you can rest assured that any car you rent carries at least minimum required coverage. So, why car rental companies offer insurance on top of that already carried by default?

The insurance offered by rental companies is different from the one you deal with as a car owner. They always offer insurance waivers - additional types of coverage that are designed specifically for rental purposes. So, if you refuse to take the insurance offered by the insurer you are actually refusing from optional coverage that is not mandatory. That's why it's perfectly legal to drive a rental car without getting additional insurance from the company. But what if you actually do? Do these insurance weavers carry some useful features or they are just a way to spend more money?

Consider the actual coverage you need

In most cases rental insurance waivers deliver different types of coverage that is aimed either at the car, the people inside it or its contents, which can prove to be useful in various situations. For example, the loss damage waiver, which is available with virtually all car rental companies across the globe, covers the loss due to damage to the rental car caused by the client. Personal effects coverage waiver, on the other hand, covers the cost of the belongings kept in the car in case they are stolen from it. So, as you see, these waivers can be rather useful depending on the place, situation and intensity of rental car use. But are these waivers worth paying for?

Well, it's usually a matter of personal budget. If you've chosen the cheapest car for your trip and have a very thin wallet then you will probably go off better without any insurance, since it will usually add several to several dozen dollars to the daily rental rate. On the other hand, if you can afford paying a bit extra for having some peace of mind, why wouldn't you? It's not that the rental will instantly become too expensive, since rental insurance rates rarely exceed half of the standard daily rate for a given car. Yet again, the final decision should always be made with the actual situation and location taken into account.