Planning ahead before you go will save you time, worry and possibly a lot of money, when it comes to that pesky question about rental car insurance. Most rental car companies will encourage you to spring for their policy, but do you really need it?
First, some definitions:
Collision/Damage Waiver
This is sometimes referred to as CDW or LDW, or just DW. This is not actually an insurance policy per se, but rather a waiver, in which the rental car company agrees not to make a claim against you in the case of the rental car being stolen or damaged. Typically certain exclusions apply, such as impaired driving, or driving outside of a specified area or specified country. Although it can be pricey, if it is purchased, the rental car company will generally cover the costs of repair or replacement if the car is damaged or stolen.
Supplemental Liability Insurance
This type of insurance protects you if you accidentally damage someone else’s property or vehicle, with a typical limit of one million dollars.
Personal Property / Effects Insurance
This insurance covers your personal property, such as your laptop or cell phone, in the case of a robbery or damage in an accident.
But what if you have car insurance at home? Are you covered while driving the rental car?
This is where checking ahead of time can really pay off. For many people, their auto policy containing collision coverage will cover them while driving a rental car, as long as they are driving in the US or Canada. What this policy may not cover is the “loss of use” charges, stemming from the loss of revenue to the rental car company while the car is in the repair shop, in the case of an accident. If you purchased the CDW or the LDW, these charges are usually covered.
Another option to investigate before you go is the insurance available through your major credit cards. Visa, MasterCard, Discover and American Express all offer some type of rental car insurance coverage, but some only offer it to their elite members. This coverage is typically secondary to your primary coverage, so you need a personal auto policy that includes collision coverage. And in some situations, you may be required to put the entire rental car bill on that credit card, to qualify for the insurance. There may also be stipulations pertaining to the CDW or LDW offered by the rental car company as well.
So, it’s complicated. Be sure to investigate the requirements and rules of the credit card company before you make your decision. Phone calls to your insurance agent and your major credit card will be time well spent in understanding your options available for rental car coverage.
If you book your rental through All Star Travel, we offer a Protect Package which is not an insurance plan, but a protection package. Contact our Rental Team at 866-978-5072 or via email at support@allstartravel.com, to learn more about rental car insurance and the great summer deals we have going right now. If you’re ready to book your car, visit our “How It Works” page to learn more and get your summer vacay rolling! Check out our Customer Reviews for the lowdown on our great service and rates!
Sources include: Allstate.com and Money- US News