We have all experienced walking into the car rental agency wanting to rent a car. We go through the normal process of picking the right car, where we are allowed to drive but one crucial part that has most of us stumped is the insurance side of it. Most car rental agencies have multiple insurance plans which can really put the spanner in the works of someone who is simply looking for a simple insurance plan for their rental car. Of all the processes involved in renting a car, the car rental insurance is by far one of the most difficult to understand and an area where people can be easily taken advantage off. In this article we will explore the many ways that rental car insurance is used as a way for rental companies to get you to part with more cash than necessary.

It was only lately that we saw an increase in the number of people opting for temporary coverage for their car insurance. This can mostly be attributed to the belt tightening exercise that many of us had to do in the face of the current recession. For many who simply don’t have the money to pay off their yearly premiums in one shot temporary car insurance provides that coverage.

It is almost everywhere that we hear that having insurance is a good thing. We are even brought up on the fact that having insurance is the smart way of doing things. We are made to believe that with insurance, we are somehow protected in some sort of bubble. Any financial risk from accidents, injuries all the way to repairs etc will be magically taken care-off by the insurance companies. They don’t tell you that buying car insurance itself could be a financial risk. This is especially so if they decline your claim or make it difficult for you to get your car repaired. Car insurance policies aren’t the godsend that many people think they are.