Category: Rental Car Insurance

The Rental Car Counter - What You Need To Know

3/6/2014

Once you know your current coverage, here is the rundown on the four basic options usually available through the rental car company:

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.
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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
Greeley: 970-475-0900
Surrounding States: 877-643-6148

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Rental Car insurance - Know your coverage

2/26/2014

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Long distance travel for business or pleasure usually includes the need to rent a car. If you've ever been at the rental car counter wondering if you need that extra insurance coverage they are offering, you are not alone.

Jeanne M. Salvatore, Senior Vice President and Consumer Spokesperson for the Insurance Information Institute, has said, "Faced with a number of choices, some [vehicle] renters either purchase all of the coverage or they decline the insurance without knowing if they are covered by other policies. This can result in either wasting money by purchasing unnecessary coverage or having gaps in coverage, making the driver dangerously uninsured."

This is the first tip that will help ensure you have sufficient insurance coverage while avoiding costly mistakes:

1. KNOW YOUR CURRENT COVERAGE

Before renting a car, the I.I.I. suggests making two phone calls: the first one to your insurance agent or company representative to establish what coverage you already have through your auto and/or homeowners/renters policy.

Find out how much coverage you currently have on your own car. In most cases, whatever coverage and deductibles you have on your car will apply when you rent a car, providing you are using the car for personal use and not for business.

If you have dropped either comprehensive or collision on your own car as a way to reduce insurance costs, you will not be covered if your rental car is stolen or damaged in an accident.

Check to see if your insurance provider pays for administrative fees, loss of use, or towing charges. Some companies may provide an insurance rider to cover some of these costs, which would make it less expensive than purchasing coverage through the rental car company.

Your second call should be made to the credit card company you will be using to pay for the rental car. You can find out this information by calling the toll-free number on the back of the card you plan to use.

Insurance benefits offered by credit card companies can vary widely, and can be determined by the company and/or bank that issues the card, as well as the level of credit card used (a platinum card may offer more coverage than a gold card).
Credit cards usually only cover damage to or loss of the rental car, not for other cars, personal belongings, or the property of others. There may be no personal liability coverage for bodily injury or death claims. Card company policies can change over time, so you may not have as much coverage as you initially planned on.
In most cases, credit card benefits are secondary to either your personal insurance protection or the insurance offered by the rental car company.

Our next post will highlight the coverages offered by rental car companies, and when you should accept or decline their insurance coverage.

For any questions regarding rental car insurance, or any other auto, home, business, or life insurance coverages, please contact us at ALINK Insurance Services. We can help!

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The Rental Car Counter - What You Need To Know

Rental Car insurance - Know your coverage

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