This tip provided by Jim Thomas

With the mobility of today's population there has been a definite increase in the car rental business. People going on vacation, business trips or maybe the need for a rental car because of an accident.

When people rent a car there is always the question of damage to the rental while it is in care of the person renting the vehicle. There really is two ways of looking at this when you are renting a vehicle. The agency renting the unit to you will offer the coverage for an extra fee. This will be the proper choice for those who do not want to rely on there own policy for coverage or those who do not have a personal auto policy.

The personal auto policy will provide coverage for a rental car automatically with out any extra premium charge if you carry comprehensive and collision on one of the vehicles on your policy. It provides the broadest coverage applicable to any covered auto shown on your policy. What ever the deductible is on your own vehicle is what it will be on the rental car.

You just have to remember that if you do have an accident or even if some one else hits you in a rental car or even a parking lot dent it will be your auto policy that has to respond. This may be difficult for you since you will be dealing with a third party in the claim and most of the time someone out of state being a rental car.

If you buy the coverage from the rental agency all you will have to do is report it to them and let them take care of their own car. It will not bring in your policy for the damage to the rental car. Your liability will still provide coverage to you for any third party claims against you as result of any accident.

So the next time you rent a car you will have to decide if you want to spend a few extra bucks for their insurance or rely on your own policy which provides it for you. Just make sure you weigh the options and understand the difference in the two ways of covering the rental car.