Car Rental Insurance
Ah, car rental insurance; some say it’s a waste of money- a gimmick, if you will; while others think it’s a great and safe way to protect yourself. Regardless of whatever the case may be, most people tend to shy away from buying car rental insurance because it can be confusing, time consuming, not to mention expensive. After all, what are the chances that you’re going wreck the rental car? You’re only renting it for a day or two! Then again, you could be wrong…
What You Should Know
Most, if not all, car rental agencies offer various sales pitches for collision damage waivers (CDW), which they will usually wait to throw at you once you get to the car rental counter to pay for your vehicle. Many renters know that they don’t need to pay for CDW; however, there are some for whom it makes sense for and others who simply fall into it because of that pitch out of left field that threw them off to begin with.
If you’re not sure whether or not you should get CDW, feel free to contact your own auto insurance agency. It is always a good idea to do this WELL IN ADVANCE before you even make your rental reservations (if possible). If you are the type that travels a lot and rents a car more often than you drive your own personal vehicle, or if you don’t own a vehicle at all, you should consider asking an auto insurance agent about purchasing non-owner liability insurance (which can sometimes save you money over a CDW).
If you do decide to get car rental insurance, there are a variety of options that can be thrown at you in the following four ways:
- Collision Damage Waiver (CDW): This type of coverage usually costs anywhere between $9-20/day and relieves you of financial responsibility if your rental car is damaged in an accident, vandalism or theft.
- Supplemental Liability Insurance (SLI): This type of coverage usually costs anywhere between $7-9/day and provides excess liability coverage.
- Personal Accident Insurance (PAI): This type of coverage usually costs anywhere between $3-5/day and covers you and all of your passengers in your vehicle for any medical expenses. However, it should be noted that most renters already have personal health insurance, therefore, it’s not necessary to have PAI coverage.
- Personal Effects Coverage (PEC): This type of coverage usually costs between $2-5/day and provides coverage for theft or damage to personal items inside the rental car. However, most renters already have this type of coverage through their own rental agencies.
The key to car rental insurance is understanding what your options are, what the polices of the car rental agency are and how those policies affect you. If you can do this in advance, it will save you a lot of grief at the car rental counter. If you have a horror story to tell about your car rental experience, leave a comment telling us all about it!
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Everyone has that one horror story from renting a car. Once, when I rented a car, I was informed by the gentleman of the car rental agency (whose name I will not reveal) who was completing my paperwork, that I “didn’t have to worry about filling the gas tank back up upon returning the vehicle.” Supposedly, it was part of some special deal/incentive thing that they were having at the time (which I didn’t even know about). Now, when a car rental agency rents you a vehicle, a representative is supposed to verbally go over your contract with you to highlight certain key points because, let’s face it, who wants to sit there and spend an hour reading through the 10 page contract while there are other customers standing in line behind you? In any case, I returned the car with a half tank of gas. Of course, when I returned the vehicle, there was a different sales representative there who had no idea that this other representative had given me a “deal” and he tried to charge me for the gas tank not being filled up. When we examined the contract, it turned out that the rental car agency did have a policy about returning the vehicle with a full tank. However, due to the mix up, the sales representative (who by this time, got his manager involved) let it go.



