Since I do not own a car, I do not have car insurance, but a few times a year I rent a car. I would like to know what insurance the rental company has and if it's necessary to get all the optional coverages? What am I responsible for in case I get in an accident or if I find the car dented/hit?


Answer: If you have a “gold” or "platinum" credit card, you can often completely waive the insurance provided by the car rental agency. Many gold cards have a yearly fee attached, but the cost of insurance on a rental vehicle for more than 2 or 3 times a year can be considerably more than the fee for the credit card. So if you rent frequently, definitely look into a gold credit card.

You can also find gold cards without a fee, but be sure that they still provide you with the coverage to waive rental car insurance.

If you waive insurance at a rental agency and you find the car has been damaged, you are likely responsible for the full cost of repair. Always check the car out carefully at the rental location before you drive off the lot. 

Always have some kind of insurance if you are driving a rental vehicle. If you are in an accident with another vehicle and without insurance, the financial impacts could be devastating. So, please don’t travel without insurance, and look into that gold card to save yourself some money.