It's a question many of us wrestle with every time we reach the counter of a car-rental agency: Do I really need rental insurance? Unfortunately, there is no simple answer. For some, rental insurance is a waste of money; for others, it can mean the difference between paying out thousands of dollars for repairs and walking away free of any obligation.
If you're confused about the level of coverage you need when renting a car, take the time to review these six tips from the National Association of Insurance Commissioners:
Review your policies
Rental agencies typically offer four types of insurance: collision damage waivers (also known as loss damage waivers), liability insurance, personal accident insurance and personal effects coverage. Drivers who have comprehensive and collision coverage on their cars can usually forgo collision damage waivers.
Buy a low-fee insurance rider
If you find that your auto insurance policy does not provide rental-car coverage, you could save money by requesting an "insurance rider" from your insurance company rather than purchasing additional coverage through a rental agency, according to the NAIC.
Check your credit-card coverage
Many credit cards now offer some level of collision and theft protection. But don't assume that means you won't need additional insurance. In most cases, the coverage provided by credit cards is "secondary" or supplemental, meaning it only kicks in after your auto insurance or car-rental insurance has been used up. The NAIC recommends calling your credit-card provider to determine your level of coverage.
Beware when traveling for business
It's important to keep in mind that you're personal auto insurance policy may not apply if you're traveling on business. To ensure that you have the level of coverage you need, talk to your employer.
Recognize that the rules for long-term rentals are different
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