Anyone who has ever rented a vehicle has faced the age-old question: "Would you like to buy insurance coverage for the rental?"

These coverages are completely optional and could add $30-plus per day to the rental cost, so purchasing coverage may not be the right choice for everyone.

Of course, the first step in making this choice is understanding the types of rental coverage available and what protections they provide. According to Allianz Travel, there are four main types of coverage, which we’ll break down below.

Collision damage waiver

The collision damage waiver, also sometimes known as a loss damage waiver, protects the renter from paying for repairs or replacement if the vehicle is damaged or stolen. While your personal auto policy likely includes collision coverage for rental cars, Allianz points out that this comes with a deductible and may not actually cover all of the rental company’s charges.

Supplemental liability insurance

This coverage adds a higher liability limit on top of what the renter’s personal auto policy may provide for a rental vehicle. This may be a good choice for those who only carry the legal minimum of liability coverage.

Personal accident insurance

While liability insurance covers the property and medical needs of other people involved in an accident, personal accident insurance provides coverage medical, ambulance and death coverage for the rental driver and their passengers.

Personal effects coverage

Allianz explains that personal effects insurance covers the theft of possessions from the rental car, up to a set limit. This coverage is often unnecessary, as those who already have a homeowners or renters policy may already be covered for these thefts by their existing policies.

In the slideshow above, we’ll look at six reasons someone should consider purchasing rental car insurance, according to Consumer Reports.

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