Are you going somewhere for spring break? If so, will you be using a rental car when you get there? Before the rental company gives you the keys, they will ask you if you want their rental car insurance. Rental car insurance can be confusing, but is important to know about when traveling. Here are some steps you should take when dealing with rental car insurance:
Call your Auto Insurance Company.
The first thing you should do is call your auto insurance company or auto insurance agent. They can tell you whether or not you are covered for renter’s insurance. Often times, your car insurance policy will already cover car rentals for the same type and amount of coverage as your own personal car. Make sure you get the specific details from your agent. Not all policies cover the same types of accidents. For example, some companies will not cover the car if it was parked in a bad part of town. There are rental agreements through each auto insurance company that have these details. Contact your agent to find out specifically what they will cover for rental car insurance.
Know the types of Insurance the Rental Company will offer.
It can be confusing to know what the rental companies are offering when they urge you to buy the insurance. There are two types of waivers that they will offer you to sign. There is the Collision Damage Waiver (CDW) and the Loss Damage Waiver (LDW). The collision waiver is used for accidents that happen by colliding with another vehicle. The loss damage waiver will cover anything else that could happen to the vehicle. This would include theft of the vehicle, any vandalism done to the vehicle, or any other damage done to the vehicle other than collision. Know each of these types of waivers before you buy their rental car insurance. Most companies will charge $10 to $30 per day.
Use a Credit Card
When paying for the rental with a credit card, some credit card companies will automatically cover rental car insurance. Use a card with primary coverage if possible. Then, if you were to be in an accident, you would not have to file a claim with your auto insurance company. More and more card companies are offering primary coverage. A few of the best primary coverage cards in the United States would be Chase Sapphire Preferred, Discover Escape, and the United MilagePlus Explorer cards. Outside of the U.S., a few of the cards with the best primary coverage for rental car insurance would be all Citi cards, all Chase cards, most MasterCard World and World Elite cards, Discover cards, and Diners Club cards. These cards generally will have coverage for the rental car for about 30 days. Visa and MasterCard could be 15 days, so call and verify what length of time they will cover.
Make a Decision
When the rental agent asks you if you want the rental car insurance, you probably do not. Chances are your auto insurance company will already have you covered. If they do not, pay with your primary coverage credit card. Ultimately, it comes down to knowing what you need. The rental companies will make their rental car insurance sound very promising, so make sure you know what you are covered for before making a decision on their insurance. If you have any questions on the coverage we offer for car rental insurance, give us a call or talk to your agent to verify your policy.