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Is rental coverage necessary?
I'm reviewing my auto insurance and trying to cut off some unnecessary premiums.
I've already increased my "Loss or Damage" deductible to $1000 so I won't report minor accidents and will try to settle with another party privately if I'm at fault. In this case, I feel the "Rental coverage" seems unnecessary.
What's your opinion? Will my insurance company be unwilling to provide necessary substitutable vehicles when I'm involved into a non-faulty accident?
You are asking for my opinion, so here is what I think only based in what you told me (without looking at any other factors that might affect this answer).
Rental coverage is for you only. In other words, if you hit someone and it is your fault, you insurance company will be require to pay for the rental car of the person you hit, regardless whether or not you have this coverage or not. The third party rental car gets paid under your liability coverage.
The coverage applies to you in the sense that if you get in an accident (regardless of fault), your insurance company will pay for your rental expenses subject to the pertinent limits (and this is what would affect whether or not you get a "good" rental or a rice cooker!
If you have a second car, or you can afford to be without a car for more than a week, then you are probably safe in dropping this coverage. If you cannot live without a car (because of work or family) then you need this coverage. The worst thing that can happen is that you get in an accident and cannot get to work.
That is what I think. Also, $1,000 is pretty high, I would personally not have it that high unless you have $1,000 in your savings account just in case of an accident.
That is my opinion, but you should consult with your agent for more info about how to drop your premium (like asking for good student discounts, safety features, good credit, etc.)
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