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RENTAL CAR & TRAVEL INSURANCE
RENTAL CAR & TRAVEL INSURANCE MONEY SAVING TIPS
One of the mysteries of renting a car is whether you should purchase the different types of insurance coverage offered by the rental car companies. Whether you need the coverage depends on two things. First, if you do run into a problem, and there is a financial loss, can you afford to absorb the type of loss incurred, or are you more comfortable in being covered for the loss. Second, if you do not purchase the coverage from the rental company, are you already covered through other sources. You will be surprised at how often you are already covered for any potential loss, at no additional cost, if you just take a few easy steps to make sure the coverage is there.
1. Collision damage waiver or “CDW.” This coverage provides that the rental
company will pay in full for any damage to the vehicle or vehicle theft, usually
without any deductibles. If you decline the waiver and do not pay for the coverage,
and there is damage to the vehicle or it is stolen, you will be responsible to pay
for the damage and theft. If you do choose this coverage, it will normally cost
$10-
a. Your own auto insurance policy that you carry on your cars at home may already
provide coverage for damage or theft of the rental vehicle, just like it does for
the vehicles you own. Make sure you check with your insurance company or agent to
determine if this is the case. If you are covered, it generally works like this.
If you carry collision coverage on your own vehicles, your rental car will also
be covered for collision damage, but your deductible will apply. If you have comprehensive
coverage, your rental car will also be covered for non-
b. If you are not covered for rental vehicle damage under your own auto insurance policy, and you rent the vehicle using a credit card that provides vehicle coverage (most national cards like Visa and MasterCard provide this coverage) the credit card company will pay for the cost of any damages or theft of the rental vehicle. And, generally they will pay all the costs (with perhaps a few exceptions), without any deductibles. However, they will not provide any coverage if you purchased the CDW. They will also not cover the damage if the cost of the damage is covered under any other existing policies, such as your own auto policy. But, after your own auto policy covers damages, the credit card company generally will reimburse you for any deductibles charged by your insurance company, and will cover any losses not covered by your insurance company. Check with your credit card company to see if they offer this type of coverage and what it covers.
c. Coverage for damage to the vehicle may also be provided by your employer’s insurance coverage or by some auto clubs, thus eliminating the need for the CDW.
d. Since adequate coverage is often already available from your own auto insurer and/or your credit card company, many people do not buy the Collision Damage Waiver and save a considerable amount of money. But it is important to remember, no matter what kind of coverage you have, always inspect the vehicle thoroughly for damage before you leave the rental car lot, and also make sure everything works on the car. And make sure any prior damage is noted on the rental agreement. Also, when you return the car and the rental company indicates that there is damage, do not hesitate to tell them that you do not feel you are responsible for the damage, if indeed that is the case. Items like windshields sometimes just crack on their own without any known impact, and rental car companies often will not pursue a claim for items like this.
2. Personal Accident Insurance or “PAI.” This insurance, usually less than $5 per day, will generally pay a death benefit and a portion of your medical expenses if you are in an accident. While, if an accident occurs, it’s great to have a lot of coverage, you probably already have this coverage in the form of your own medical insurance and own life insurance. For most people, this is an unnecessary expense.
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