Car Insurance Information

Among some of the reasons for checking your existing coverage's before your trip are:

• Liability. Most rental car companies will hold you totally responsible for your rental vehicle if damaged or stolen.

• Possible savings. These coverage's can add up to $12-$25 per day on your final car rental bill. There is really no need to pay for coverage's you already have (Note: Some renters may want these coverage's to protect their existing personal car insurance premiums/rates).

• Convenience. Normally the only way to change your rental coverage options during the time of your rental is by the inconvenience of bringing your rental back to the agency and beginning a new rental agreement.

• Peace of mind.

Credit card companies do not provide coverage's for more expensive rentals, so it is necessary to call your credit card company to see which rental vehicles they cover. Usually they provide coverage for cars and exclude more expensive rentals such as sport utility vehicles (SUV's), luxury cars, exotic cars and vans.

Another consideration: You may want to accept an agency's coverage's since your personal car insurance rates may go up after you make a claim.

At the beginning of your rental, some agencies ask if you want some kind of "fuel-purchase option". This eliminates the need to bring the car back full (usually required) and can be advantageous if you are in a hurry. The downside to this option would be that you may have bought some unneeded gas when not bringing the rental back empty.

The upside is that this option eliminates the need to stop at a gas station on the way back to the airport when returning the rental. You also are not required to buy gasoline from the agency at substantially higher than market prices if you decline this option and also fail to return the rental with a full tank! Usually when purchasing this fuel option at the beginning, the agency will charge you gasoline prices at or near the market price of the immediate area.

If you are thrift-minded and not in a big hurry, you may want to decline this fuel option and leave enough time to "fill up" before returning your vehicle. In doing this, you will not be stuck with the only fuel option at the end of your trip. That being, buying some pretty expensive gasoline

1) CDW (Collision Damage Waiver), LDW (Loss Damage Waiver). Although technically not collision insurance, in return for a daily fee, CDW or LDW waives the right for a rental car company to recover money from the renter if the vehicle is damaged or stolen. This does not cover damages made to someone else's car during your rental (third party damages). Your personal or business auto coverage normally covers this when you are renting a car. Check first with your car insurance agent.

Some CDW's can even become void in certain circumstances. This may happen if you drive in a negligent manner or out of the state in which you rented the car if geographical restrictions apply in your rental contract.

2) Personal liability coverage's such as LIS (Liability Insurance Supplement). Besides LIS, an agency may offer supplemental or additional liability coverage which pays over and above what your personal or business insurance covers. If you do not already have personal liability coverage you should purchase the rental agency's.

3) 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.

4) 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.