|
When you rent a car you
are unsure about what to do when it comes to accepting or declining
car rental insurance.
In most states,
car rental companies are prohibited from refusing to rent you a car
unless you purchase the additional insurance, but many companies
still try to do it. |
|
Some Types of
Coverages Agencies Offered
by Car Insurance Companies: -
-
Collision
Damage Waiver (CDW)-This
coverage relieves you of financial responsibility if your rental
car is damaged or stolen. The CDW may be void, if you cause an
accident by speeding, driving on unpaved roads or driving while
intoxicated. If you have comprehensive and collision on your own
car, you may not need to purchase this coverage. Some CDW's can
even become void if you drive in a negligent manner out of the
state if geographical restrictions apply in your rental contract.
-
Liability
Insurance-This
provides excess liability coverage of up to $1 million for the
time you rent a car. Frequent car renters sometimes find this more
cost-effective than constantly paying for the extra liability
coverage.
-
PAI
(Personal Accident Insurance or Coverage)-This
provides a one-time payment for you or a passenger in case of
death or maiming from a car accident. This is generally covered
under your auto or health policies.
-
PEC
(Personal Effects Coverage) or Personal Property Insurance-
This pays if you have something lost or stolen from your car.
Opting for this coverage is obviously something you have to decide
for yourself since your existing coverage probably doesn't include
this coverage.
Before you
buy car rental insurance: -
-
Contact your
insurance company-Find
out how much coverage you have on your own car. In most cases, the
coverage and deductibles you have on your personal auto policy
would apply to a rental car, providing it's used for pleasure and
not business. If you don't have comprehensive and collision
coverage on your own car, you will not be covered if your rental
car is stolen or if it is damaged in an accident.
2. Call
your credit card company-
Besides your personal car insurance, some credit cards will cover
damage or theft to your rental car. While this may replace the need
for CDW (Collision Damage Waiver) and LDW (Loss Damage Waiver)
offered at the car rental counter, check with your credit card
company to see what kind of vehicles are covered and if it's primary
or secondary.
Unlike other car
insurance, car rental insurance is relatively inexpensive. Ask your
insurance agent about the amount of rental car insurance coverage
that you need and purchase an amount that will provide a rental car
similar in size and style to the car that you are currently driving.
|
