In 2007, The National Association of Insurance Commissioners (NAIC) polled vehicle renters to census their basic understanding of rental insurance; of the 632 people surveyed, 42 percent were extremely confused or only had a basic understanding of the terms and conditions. Yet, rental car insurance is not an enigma. Here are the facts to help you decide whether rental car insurance is a good idea for you and your loved ones.
USA Today reports that Avis offers five different kinds of insurance:
- Supplemental liability insurance;
- A loss damage waiver;
- Personal effects protection; and
- Two kinds of personal accident coverage
When polled via telephone, 34 percent of people said that they bought renter's insurance for peace of mind. Also, Enterprise and Rent-a-Car rents extra car insurance to about 30 percent of renters. When studying rental car insurance rates, USA Today found that most vehicle rental places charged anywhere from $9 to $36 for daily loss damage waiver policies. For supplemental liability coverage they charged between $9 and $16.
Are rental car businesses the only place to find additional coverage for your loaned transportation? That depends. Apparently, some insurance companies offer rental car insurance through their collision policy. Therefore, if you pay a monthly fee for your own automobile it might be savvy to skip the extra step. Of course, if you only pay for monthly liability insurance this doesn't apply to you. Those who do pay for collision insurance should contact their insurance company to see if the particular corporation provides this. Yet, reportedly, should a person get in a car accident while in a rental car, a person's car insurance standing will be affected; vehicle rental corporations suggest purchasing their extra coverage due to this fact.
Another form of coverage though an unlikely source can be found from credit card companies. Should you choose this option, you should call your credit card company or access them via the internet as companies differ in policy coverage, limitations, and restrictions. Credit card companies have an 800 number on the back of their card. It is important to ask about collision and liability coverage specifically. Sometimes credit card companies will not cover your rental if you are traveling outside of the U.S. while other companies will have limitations that should be noted. Other times, even within the country, new or expensive rentals are not covered under the policy.
CNN reports that although someone might have the same card as another person, two different kinds of coverage may apply. This is why it is imperative to call the company before hand - sometimes even twice to confirm the information. There are times when card companies give different information. To be safe, requesting a copy via fax might be the best option. One driver found out that he had not reported to his credit card company in time to claim compensation; allegedly, Visa requires that you contact them within 45 days of the accident. One American Express platinum member told USA Today that his credit card allowed him to purchase extra coverage for a flat rate of $24.95.
Many times, the accidents that occur with rental cars are not even the renter's fault. There have been cases reported where valets have accidentally scratched the rental vehicle. When this happens and the renter hadn't purchased renter's insurance, dealing with the rental car companies is no pleasant task. One man recalled that after his accident, the rental company "pressured" him to come up with the compensation quickly. Also another woman claimed that she was charged $865 until her vehicle damage could be estimated. After this, her rental company filed a bill with her hotel and she had had to wait four months until she received her money back.
Renters insurance is an important issue to think about before heading out on vacation or a business trip. Don't be stressed out due to ignorance. Call your insurance companies today in order to find out which option is best for you and enjoy your peace of mind while traveling.