Car rental insurance

Planning on renting a car from Express Rent-A-Car? Before you rent, do you know the facts about car rental insurance? If you know the facts about car rental insurance, this can mean the difference between paying a small fee for insurance and paying for a rental car that has been damaged or stolen.

Some good reasons to check on rental car insurance are:

• Liability. If anything happens to the rental car such as damage or theft, the rental company may hold you responsible.
• Saving money. If you already have rental car insurance through your insurance carrier, you may be able to save some money in that area when you rent your car
• Peace of mind. Wouldn’t you rather know that you are covered in the event something does happen?

• Collision Damage Waiver (CDW). This technically is not classified as insurance, but a collision damage waiver will protect you in the event that the car is damaged. You will not need to pay for the rental car if it is damaged in an accident. However, a collision damage waiver may be void under certain circumstances such as if the car was driven carelessly or if you took the car out of state (if you were not authorized to take it out of the state it was rented in).
• Personal liability coverage. This is additional liability coverage that will provide coverage above and beyond coverage already provided by your own insurance carrier.
• Personal Accident Insurance (PAI). This coverage will provide a one-time payment for you or a passenger in the rental in the event of a death or injury.
• Personal Effects Coverage or Personal Property Insurance. If anything is lost or stolen from your rental car, this coverage will provide compensation.

If you have a credit card in addition to car insurance, you may want to check with your credit card company as well. Some credit card companies offer damage and theft coverage for a rental car, which may be able to replace the need for a collision damage waiver on the rental car. However, restrictions may apply such as the kind of vehicle that is covered and whether the coverage provided is “primary” or “secondary”. Credit card companies generally do not provide coverage for expensive vehicles such as exotic sports cars or SUVs. Additionally, coverage by the credit card company may only be “primary” coverage if you do not already have an insurance provider for collision coverage.

Before you make a decision on renting your car, be sure you have discussed your coverage options with your car insurance company as well as your credit card company. They can help you determine whether you will be sufficiently covered while you are driving a rental car. Paying a little extra for insurance now may be the big difference between having your insurance company cover the cost of damage to the car and being responsible for the costs out of your own pocket.