Insurance on rental car?

Is it necessary to take the rental car companies insurance or do our credit cards or personal insurance really cover damages or theft or fire if something happens to a rental car?

You need to check what your auto insurance covers, as well as what sorts of coverage your credit card(s) may provide. I do a fair share of travelling and auto renting, and my auto insurers have always provided for me the exact same coverages which are provided to my personally owned cars.

Of course, the rental agencies love to sell you this insurance, simply because it's a great profit generator for them.

My guess is that you are already covered via your auto insurance and/or credit cards.

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Paying rental car insurance is a waste of $$$$.... if you pay with a visa or american express... both will pay the deductible when the insurance claim is put in... there's no need to pay for that insurance, i've never done it. When you go to rent the car, if they say they dont accept your insurance, call the agent and verify it with them.... they've done that to me before! Grrrr... but you should never have to pay insurance.

Call your insurance agent and ask what rental coverage you have. Sometimes your own policy will cover you. But you need to know for sure before you turn down the rental company's policy.

Well, we don't know. Sometimes the credit card will cover the "damage deductible", you'll have to check with them. Sometimes YOUR car insurance will carry over, IF your car isn't being used - it makes the rental a substitute vehicle - subject to YOUR policy deductibles.

But neither your policy nor your credit card will cover the "loss of rental use" charges - rental costs each day the car is in the shop being repaired - which WILL be charged to your credit card deposit.

I don't buy it - I think it's a waste. But you need to see what your policy will cover, and talk to your agent, before making a decision.

Well, first, liability only follows you to a rental if you are a named insured on the policy, not just a driver. I always advise my insureds to purchase the LDW or CDW, even if they have collision coverage & here's why. The rental car co can charge replacement value - your policy only pays actual cash value. The rental car company may charge admistrative fees, your policy does NOT cover that. The rental car co may charge loss of use, your company will only pay that if the rental agency can prove that all vehicles of that type were rented off the lot while that car was being repaired. Your company will reserve the right to inspect the vehicle BEFORE any repairs are made. If your company is across country from the rental - the adjuster may not be able to go out to inspect the vehicle right away, & if the rental co repairs the vehicle, coverage on your policy can be DENIED. So, you will be responsible to pay the damages out of pocket, the rental agency will likely charge your credit card the full amount of the damages.
If there is no problem with coverage, you will have to pay your deductible. Then if your company pays out (on a collision claim) more than the statute for a chargeable accident, you will be surcharged for 3 yrs on your policy. Of course if you are liable to another party for damages, it will likely be chargable anyway if your company has to pay damages to a 3rd party. If it is a comprehensive claim, it will be on your claims history for 3 yrs & can affect your tiering or your renewal eligibility if you have other claims.
Remember, the coverage territory on auto policies in most states is the US, Canada & US possessions & territories, that's it. If you are renting in Mexico or Europe for example, you have to buy ALL of their coverages.
You can call your credit card company to find out what they do & don't cover & under what circumstances. Also, call your agent to find out what your company does & doesn't cover & under what circumstance.
Two other things - be sure to inspect the vehiclewith the rental agent, completely & carefully & write down any and all damage, no matter how small (& both of you sign off on it)before you drive away. We recently had a lady get blamed for damages to a vehicle that she was sure she didn't do but couldn't prove it because she didn't do a close inspection of the vehicle.
Also, be sure to list ALL possible drivers of the vehicle on the rental contract. This is because only the OWNER of the vehicle can give permission to someone to drive it, which is the rental car company, not you.
I always buy it, it is peace of mind & something I don't have to worry about. If there is damage to the vehicle I can just drop it off & owe nothing. I luckily haven't had to use it but if I did it would be worth every penny of every time I paid for it.
I hope this answers your questions.

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