Your Own Insurance and Loss Damage Waivers

You can save yourself a lot of hassle in your car rental experience by doing three things. First: check your own car insurance policy to see what coverage carries over to rental cars. Second: see if the credit card you are using offers any coverage for renting. And finally: check the options the car rental agency offers in its own policies.

The person you are renting your car from will only know their own car rental agency's policies. It's your responsibility to come to the counter already educated. Insurance studies show about 20% of people renting a car opt for the coverage every time. Another 19% buy on occasion. And the experts add that most of those people don't really need it.

If you own a car and have a premium credit card, you may already have enough coverage on your rental car long before you even think of renting.

Your personal policy generally includes coverage for accidents, called collision, and coverage against theft, vandalism, animal damages or fires, called comprehensive coverage.

If that's the case, your car rental should also be covered. Because each insurance policy is different, it's best to consult your agent just to clarify what you might expect in terms of car rental coverage.

Many credit cards also cover collision and comprehensive claims for any car rental charged through them. But these policies also vary greatly, and some limit rental car coverage to their premium customers.

Each card has its own exclusions, payment limits and other restrictions. So again, it's a matter of checking with the company to find out where car rentals fall in your contract. You can get that answer by dialing the 800-number on the back of your card.

Another point you should remember, however, is that both your personal policy and the card may have restrictions on deductibles. That's why it's important to also know the details of what's available through the car rental agency itself before renting.

Policy costs generally range between $7 to $25 a day, depending on the car rental company, the coverage and the type of car you're renting. The contracts typically offer four types of coverage:

* Supplemental Liability Insurance provides you with coverage for damage to property and injuries you may cause to others while in the rental car.

*Personal accident insurance covers the medical bills for passengers of your rental car and yourself in the event of an accident. That includes accidental death. Careful, car rental companies have firm caps on the coverage. Be sure to call your regular car insurance company, as your insurance policy may already provide coverage for you when driving a rental car.

*Personal effects coverage pays for items stolen from your car. (It's often combined with personal accident insurance.)

*Collision damage waivers. While not really insurance, it generally means you won't be held financially responsible is your rental car is stolen or damaged. The one advantage this has is that it may protect you if your regular insurance disputes a "loss of use" claim by the car rental company since they are unable rent your vehicle while it's being repaired. This is the one where a lack of coverage can really get you. Imagine having to cover the full retail cost of renting that car every day it is out of use. Yikes!

For each insurance option offered by the car rental agency, you will likely have coverage through either your own car insurance policy or credit card, or both. The key is to educate yourself to what your limits are well before the rental car attendant hands you the keys to your vehicle.

Be sure to visit Tips About Car Rental for more information and helpful resources.