Many of the holiday spots that you choose may be distant and impractical to drive to. However, due to need for privacy and luxurious comfort, it may be necessary to rent a car.

Since you will be accountable for the car that you rent, it is wise to know the responsibility that you have towards the car and the car rental company. In case of unforeseen incidents involving damage to the vehicle or injury to the occupants, neither the customer nor the company should feel wronged. Car insurance clarifies beforehand, as to who will pay the losses that occur in an accident. Whether it is damage to the car that you rent medical charges for treating injuries, or legal costs; adequate car insurance is capable of covering these expenses. Thus, it reduces your liability when you rent a car by transferring the cost of compensation and repair to the car insurance company. You only need to select the right car insurance when you rent a car.

If you need to rent a car with car insurance, the following tips will help you make a wise decision:

1. Already have a car insurance policy? You still must opt for the car rental insurance, because your personal car insurance does not cover the rented car.
   
   
2. Carefully read the coverage of your car insurance policy? Take the time to read the fine print and all details about your rented car's insurance policy to avoid complications later.
   
   
3. Additional coverage? If you are travelling with co-passengers, then insuring them as well is the ideal way to go about things. It's always better to be safe than sorry.
   
   

It is vital to understand that car insurance is not an extra expense, but a necessary part of your planning to ensure a pleasant experience when you rent a car.