As a budget-minded person, you probably research most vacation costs. That way, you can be proactive about finding great deals on hotels, airfare, and of course, rental cars. 

Of course, most price quotes for rental cars won't include any extra fees for rental car insurance. Typically, you won't learn about those until you're ready to pick up your rental. Don't wait until you get to the counter to decide if you need to buy rental car insurance. Use this handy guide to make a proactive decision that can save your budget and give you peace of mind.

A Quick Guide to Rental Car Insurance The only way to tell if you need rental car insurance is to learn about your existing coverage. For instance, your personal auto insurance policy may include these kinds of coverage:

Liability: This covers damage to other parties in an accident when you were at fault. This kind of coverage is legally required everywhere in the United States, so if you own a car, you probably have liability insurance.

Collision: This coverage may be optional. It covers accident damage to your own car that isn't covered by another driver's policy. If you still have an auto loan, your lender probably requires it.

Comprehensive: If you have comprehensive coverage, you can get reimbursed for non-accident damages to your vehicle. Examples include damage from vandalism or hail. Lenders usually offer comprehensive insurance too. If you have any or all of these coverage types for your own car, they might extend to any cars that you rent. Either read your policy or contact your agent to make sure. If your policy doesn't already extend to a rental car, you might find it's cheaper to upgrade your base policy than to pay a daily rate for a rental car. Personal car insurance commonly covers rental cars the same way that it covers the car that you own. Be wary of some possible exclusions, like renting cars in other countries or using vehicles for business. Of course, renting a car for a vacation is considered personal use.

What About Credit Card Rental Car Coverage? Lots of credit cards offer some sort of rental car protection benefit. Very often, this only covers collision damage. Very few credit cards offer full coverage, but it's a great perk if you can get it. If you only have liability insurance on the car you own, you might be able to use your credit card's protection to reduce your risks. Again, you need to look into the type of protection that your own credit card offers. Don't assume that the rental car protection benefit will insurer you against every circumstance, so be sure to read the fine print. And remember to pay for the rental with the card that has the best benefit.

What If You Don't Own a Car? If you don't own a car, you probably don't have liability insurance for your rental car. In this case, you may choose to pay the daily rate at the counter. If you plan to rent the car for several days or rent cars frequently, you might save money by purchasing a non-owner liability policy from a regular insurance company.

Do You Need to Buy Rental Car Insurance? First, you need to figure out what kind of coverage you already have. Make sure that you also check out potential exclusions that could apply to your situation. If you're still not sure what to do, call an auto insurance agent to ask. He or she should be happy to help you have a fun and worry-free vacation.

Sources: allstate.com, creditcards.com