During the process of renting a vehicle, you will be faced with several different insurance options you can take. Although you may think that the chances of you actually needing insurance are pretty slim, you just never know when and if something could happen so it is not wise to simply "take your chances". Some of the most important reasons for taking out car rental insurance include:

1. Reduces Costs in case of damage to vehicle

Insurance is automatically included in the daily rate for any rental car you book. If you choose to just go with this option and you do not reduce the excess, if damage occurs to the vehicle you will only have to pay the amount stipulated in the rental agreement. This can range in price up to around $3000 so always be sure to reduce your excess upon pick up.

2. Gives you peace of mind

Knowing that you are covered if something happens to go wrong during your car hire, will give you the peace of mind to enjoy your holiday more.

3. Stolen cars and belongings

If you choose to reduce your excess and you receive complete comprehensive cover, you will be covered if your vehicle is stolen while in your possession.

4. Options

There are lots of options when it comes to choosing insurance. Most hire companies offer 3 options when it comes to reducing your excess, each option reducing it a little bit more than the last. You also have the option of reducing your excess to $0 which means that you won't have to pay a thing if damage occurs.

5. Avoids Liability

If an accident occurs while the vehicle is in your possession, whether it is your fault or not, insurance allows you to avoid all liability. As you have already paid the excess you may even walk away without paying a cent.