Tim Harford explains in Slate why you shouldn’t opt to pay for rental car insurance.
And that’s without even seeming to realize that most credit card products bundle rental car insurance at no marginal cost.
My Diners Club card offers primary insurance. Almost any premium Visa, Mastercard, or American Express will at least cover the costs your insurance company does not, such as the $900 deductible Harford references in the article.
Several cards whose coverage is generally secondary provide primary coverage when the driver is not otherwise insured.
Check the fine print or call your credit card company to find out.
People aren’t just paying too much for something. They’re paying too much to buy something they already have.
(Hat tip to Marginal Revolution.)