1. Loss Damage Waiver (LDW), or Collision Damage Waiver
This coverage waives financial responsibility if the rental car is damaged or stolen. In most cases it also covers "loss of use" for the time a damaged rental vehicle is in the shop getting repairs, and could also included towing and administrative fees. Be aware, however, that these coverages can become void if the accident is caused by the renter speeding, driving while intoxicated, or driving on unpaved roads. If you carry collision or comprehensive insurance on your own car, check with your insurance agent to make sure you will not be duplicating coverage. A Loss Damage Waiver usually costs between $9 - $19 per day.
2. Liability protection
This provides financial protection from lawsuits if you get in an accident while driving the rental car. By law, rental companies must provide the state-required minimum amount of liability insurance. This amount is generally very low, and does not usually provide adequate protection. If you have good liability coverage on your own car, you most likely will not need additional coverage on the rental car. Liability protection will cost approximately $7 - $14 per day.
3. Personal Accident Insurance
This provides medical and emergency (ambulance) coverage for you and your passengers in the event of a car crash. If you have health insurance or personal injury protection through your own vehicle policy, you may not need this coverage. Personal Accident Insurance typically costs from $1 - $5 per day.
4. Personal Effects Coverage
Personal Effects Coverage provides insurance protection for the theft of personal items from the rental car. If you have a homeowners or renters policy with off-premises theft coverage, you are usually covered (minus your deductible). It generally costs from $1 to $4 per day.
If you are traveling out of the country and plan to rent a car, contact your insurance agent and travel agent to ensure you are adequately protected.
IF you do not currently have an auto insurance policy, you'll need to at least purchase liability protection from the rental car company. If your current policy doesn't include comprehensive and collision coverage, or you don't want to risk paying a high deductible, the purchasing insurance through the rental car company is definitely worth considering.
Any time you have insurance questions, please give us a call at ALINK Insurance Services.
Denver Metro/Parker: 303-752-6479
Colorado Springs: 719-473-6262
Surrounding States: 877-643-6148
We Can Help!