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Should I Buy Car Rental Insurance?

When you travel, you are likely to want your own form of transportation so that you can avoid any mishaps that you might run into by taking some type of public transit. The most common way we do this is either by walking everywhere we go, taking our own vehicle with us or renting a car for the duration of our stay.

If you rent a car, you will be offered the opportunity to purchase insurance for the vehicle that you will be driving for the duration of your stay. One of these types of insurance is very basic and only protects you if you’re not at fault. However, it is not the best choice because there is always the chance that you will cause an accident of some type and then you will be held liable for the damages and either your own insurance will have to pay or you will have to pay for damages and injuries on your own.

The second type of insurance that the car rental company will offer you is a form of full coverage insurance. This is the best possible option as it allows you to drive with the peace of mind that if you are rear-ended by someone who is underinsured then you will still be covered for any injuries that you sustain. It also covers you in the event that you are the cause of an accident where damages or injuries are sustained and you will not have to pay out of pocket or get your own insurance company involved. Another great reason to buy the full coverage is that if you are driving the car and it happens to break, you will not be charged for the repairs.

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Can I Deduct Rental Car Costs as a Moving Expense on My Income Tax?

There are many reasons why people need to move. Some have to move because of building projects that are occurring in their neighborhood that will affect their ability to sell their home later or they may fall under imminent domain. Others have to move in order to stay with a particular company or start a job with a new company. Military men and women have to move because they are ordered to and some people may have just bought their first home. No matter what, when you move out of a home that you have lived in for any length of time, there are certain obstacles that have to be overcome.

For people who move across the country, either for a job or any other reason, they may need to fly out and rent a car to inspect a home before they buy. This is costly in and of itself, but most people don’t think about it as being an expense that can be claimed on their tax returns. However, if your new home has a commute of at least fifty more miles than your current residence and your old job, there are many tax deductable items.

According to the IRS, you can claim any and all expenses, less the cost of meals, for your relocation purposes, so long as you’re not also reimbursed by your employer. There are a few more restrictions that a tax specialist could explain in more detail, but in essence, if you need to rent a car for any reason to move you should be allowed to claim it on your 3903 tax form so long as you are a full time employee for thirty-nine weeks in the following twelve months.

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