To be precise, what the car rental company provides is not real insurance, but a collision damage waiver agreement. That is, if there is a car accident and the vehicle is damaged, you do not have to pay compensation to the insurance company to repair the car. Or the loss of the rented vehicle being scrapped. Accepting this agreement means that you have to pay the car rental company a daily fee ranging from 16 yuan to 23 yuan on top of the rental fee.

In fact, in many cases, you do not need to purchase this kind of insurance. So before deciding to rent a car, it's a good idea to check with your car insurance and your credit card company to see if they offer the same coverage.

For example, if you carefully study the car rental insurance terms of the American Express credit card, you will find that the credit card company only provides insurance for your rental car. It does not provide third-party claims insurance, which means that if you are involved in In a car accident, if you crash someone else's car, the credit card company will not provide compensation, they will only be responsible for compensating the car you rented. Of course, American Express also provides anti-theft insurance for your rental car. So who will pay for other vehicles hit by your rental car, as well as the people in the hit car? That depends on your existing car insurance. In many cases, your car insurance will protect you. It is important to note that you purchase adequate third-party liability insurance. In China, the law stipulates that the minimum liability insurance is 200,000, but many brokerage companies recommend purchasing 1 million to 2 million. But it's possible that your own car insurance won't cover damage to your rental vehicle. This is why you need to buy additional insurance. Ask your auto insurance broker or agent to add a 27 Endorsement to your existing policy. This additional coverage provides coverage for your rental vehicle in Canada and the United States, including Hawaii. But it’s limited to this, and it won’t work in other countries. Note that the car you rent must be in your name. If two friends rent a car in the same name, both must add Clause 27 to their car insurance. This additional insurance is not more expensive than 25 yuan a year. However, it does provide insurance for the vehicle you rent during the rental period.

Car rental companies do not sell insurance. A crash damage waiver is not insurance, it is simply a rental agreement that reduces or eliminates the costs you must pay as a result of a crash. In fact, it is the rental company that makes you purchase their car insurance as a deductible.

But there are downsides to relying on your own insurance company. If you are entirely at fault in a crash, it will have an impact on your driving record because your insurance company will have to pay compensation. If you purchase a collision waiver, it will not affect your insurance record even if you are involved in a car accident.

You may also want to consider the rental car insurance protection provided by your credit card company instead of purchasing this collision damage waiver agreement. But you must understand what your credit card company offers. Each credit card company is different, so be sure to study it carefully. Various insurance terms and details of credit card companies can be found online.