Car Rental Fee Saving Tips: Know Your Insurance

You’ve heard all the warnings from people. “Get the insurance, something could happen,” “Don’t get the insurance, your own auto insurance covers everything,” and even an occasional “You may need some of it but not all of what they offer.” The last advice is the best, and you should begin figuring out your car rental insurance by calling your own auto insurance carrier.

Find out first if your carrier covers liability on rental cars. They probably do, but if not you don’t want to be holding a bill for a car you don’t own. It should cover damage and theft in any form those things might take. If you’re on business, call the person in your office who handles the insurance and ask them—your boss will be happy that you saved them money if you don’t need the rental agency’s policy.

One thing to remember when declining the liability and damage insurance on a rental car: if you have an accident or the car is stolen, you will be filing a claim with your insurance agency. This could make your rates go up, so make sure you understand how this will impact your premium payments.

Next, find out if your carrier covers replacement cost of the car and any losses the car rental agency would incur due to the car being unavailable to rent to others. Often a private auto insurer will not cover damages that a CDW (Collision Damage Waiver) or LDW (Loss Damage Waiver) would cover.

If your insurance company doesn’t offer a CDW or LDW for rentals, check with your credit card company. Often there is a provision for rental cars on your credit card contract.

Other Coverage

There are other types of coverage offered through your rental agency. One is LIS, or a Liability Insurance Supplement. You should only purchase this insurance if your own private or business auto insurance carrier does not cover personal liability.

Personal Accident Insurance, of PIA, offers coverage for death or loss of limb from an auto accident. Most personal auto insurance carriers cover this—and often health insurance covers you—so check your policy before signing up.

PEC is an insurance that covers your belongings from theft, and stands for Personal Effects Coverage. Most private car insurance (including business) companies already provide this, but if not, you might want to consider it. You should think about this especially if you are traveling to a high-crime area, or a place where you aren’t certain how travelers are received. Even if you are going to a low-risk are, remember that crimes can happen anywhere, and we all forget to lock the car once or twice in our lives.

If you want to be fully prepared for your trip with knowledge of car rental insurance, check with your own auto carrier and surf the internet for information. Knowledge can save you money and protect you as well.