Drivers in South Dakota who are renting a car for business or pleasure will be offered insurance from the car rental agency when they go in to sign the rental agreement. While it may be tempting to decline the coverage, especially if the driver has rental coverage through his or her car insurance company, this may not be the best choice.
If an accident occurs while a person is driving a rental car, he or she will be responsible for paying for the damages caused in the collision. The rental company may also charge extra fees because of the incident, and these would not be covered under a standard SD car insurance policy.
Before renting a car, it’s good idea for the policyholder to check his or her existing policy to confirm the level of coverage provided. The limit may be lower than when the customer is driving his or her own vehicle and may not provide sufficient protection.
The policyholder also needs to consider that making a claim against his or her personal insurance policy may very well mean higher premiums when the coverage is renewed. If the claim is made through a policy provided by the car rental agency, the rates may not be negatively affected as a result.
Before deciding to automatically turn down the insurance coverage offered by a rental agency, a driver should ask what the policy being offered covers and what the limit is. It may be worthwhile to add this coverage.