Car Rental Agency Tips - Ensuring Your Insurance Policy
Insurance Is A Good Thing To Already Own
Taking a risk might be good with poker or with your stocks, but when it comes to renting a car, do you really want to forgo insurance? Sure car rental insurance is complicated (even the counter agents don't know everything), but it is an unwise decision to drive without a safety net. Your cheap car rentals might not be as cheap as you think they are if you option to buy the car rental agency's insurance.
Don't be careless! As much as you want to relax on your holidays, car accidents don't go on vacation, even when you do.
The best way to answer your questions about car rental insurance is to check with your credit card company, personal and auto insurance carrier, and the rental car company itself. Be advised that you should not feel pressured to buy the rental company's insurance. Why pay for something you might already have? Take the time to check your own existing policy first. Note that there could be certain restrictions to your own policy and that certain rental vehicles might not be covered. If you're thinking about renting that Jaguar, you might want to reconsider if your own policy won't cover such a high-end vehicle.
Do I Really Need Car Rental Insurance?
If you already own a car and are paying auto insurance for it, then some things might be covered by your own insurance policy. THe best thing to do get the specifics from your insurance agent. If you do not own a car (and therefore not already have auto insurance) then it is a good idea to accept the rental company's insurance policy regarding damage and accidents. Just note that you will probably be covered at the minimum level. If you are using a credit card in your name to rent the car, then the credit card might cover some insurance as well. The best thing to do about your situation is to figure out what you already have covered by your existing policies before heading to the rental counter. You will save yourself hassle, time and money.
What's With All This Insurance Mumbo Jumbo?
CDW: Collision Damage Waiver usually covers loss and/or damage to the rental car. CDW releases you from financial responsibility under rental contract if you crash the car. This agreement can be voided if you are caught using the car in an imprudent manner (ie. driving like a maniac). Please keep in mind that CDW is technically not insurance and is not state-regulated. Some states do not even offer CDW. Be sure to thoroughly understand each car rental agency's policy regarding CDW. The terms and language are loosely used and often very ambiguous to the unsuspecting customer.
LDW: Loss Damage Waiver is similar to CDW. Check with the car rental agency first.
SLI: Supplemental Liability Insurance usually pays over and above what your personal or business insurance covers. If you do not already have personal liability coverage you could purchase the rental agency's option.
PAI: Personal Accident Insurance provides a one-time payment for you or an accompanying passenger in case of death or injury from a car accident. This is generally covered under your own auto or health policies.
Can I Transfer My Own Insurance Policy?
If you already own a car and are paying auto insurance, then check with your policy to see what is transferrable. Again, do the same if you have homeowner or renter's or health insurance. What one insurance carrier deems transferrable will be different with every company. Once again, check your own policies with your insurance agent.
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