Car rental insurance is something
many of us don’t think about until we get to the rental counter. There we often
just guess, wondering if we really need the coverage they offer.
Don’t leave your decisions to
guesswork. The truth is you probably don’t need everything they’re
selling. Here’s our advice.
Step 1. What coverage do you have?
Your first step is easy. Call us to
clarify what your auto insurance covers and whether it extends to a rental car,
truck or trailer. Just as important, ask what your policy doesn’t cover.
Tell us if you plan to rent a vehicle
for vacation, business or moving things. Your existing coverage might be
adequate. Some personal auto policies don’t cover vacation rentals but do cover
rentals if your car is being repaired due to an accident. If you’re renting for
business, your employer’s policy might already cover you.
If you rent vehicles frequently,
consider a rental car endorsement. This could save you money over time.
Step 2. Know what to expect at the rental counter
Whether you’re renting a car, truck
or trailer, most rental companies will offer you a Collision Damage Waiver
(CDW) to cover collision damage to the rented vehicle.
CDW isn’t insurance. It’s a waiver
stating the rental company will waive the rental contract provision that makes
you liable for:
· Losing or damaging the vehicle while
you are renting it, whether or not it’s your fault
· The cost to repair or replace the vehicle
· The loss of income to the rental
company while the rental vehicle is being repaired
If you say yes to CDW, the rental
company takes on your liability. The waiver can be voided under some
circumstances. Find out what they are.
If your personal comprehensive and
collision insurance cover a rental vehicle, the coverage handles only the cost
of damage or replacing the vehicle. It does not cover the income the rental
company lost while the vehicle was being
repaired – a cost you’d be expected to pay. When in doubt, ODI suggests you pay for CDW.
Some credit card companies offer
CDW-like coverage if you pay with their card. We advise calling the credit card
company for details, as offers vary and can be complex.
Other types of insurance
The rental clerk will also offer
these coverages:
Liability or Supplemental Liability Insurance. Your personal auto policy probably
covers liability while driving a rental. Check with us. Ask if your liability
insurance applies if another family member drives the rental.
Personal Effects Insurance. PEI covers damages to or loss of
personal belongings in your rental car. Homeowners insurance might cover part
of this, but find out the amount covered, what belongings are excluded, and the
deductible. Then you can decide if you need PEI.
Personal Accident Insurance. This covers medical and ambulatory
costs related to accidental injury or accidental death while renting the
vehicle.
For each type of insurance, ODI
requires the rental company to give you a factual brochure that explains the
insurer’s coverage, exclusions, limitations, provisions, how to file a claim
and more. Read this brochure before you decide.
Gather these facts now, and you’ll be
able to step up to the rental counter with confidence.
This information is brought to you by Dostal & Kirk, Inc., a proud member of the Professional Independent Agents Association of Ohio, Inc.
This information is brought to you by Dostal & Kirk, Inc., a proud member of the Professional Independent Agents Association of Ohio, Inc.
