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Rental
Car Insurance Tips for Vacationers
Properly
insuring a rental car can be tricky. Unfortunately,
many vacationers don't even think about car rental insurance
until they get to the rental car counter, which can
result in costly mistakes, according to the Insurance
Information Institute (I.I.I.).
"The
decision to buy rental car insurance or any other insurance
product should not be a snap decision," said Jeanne
M. Salvatore, I.I.I.'s consumer spokesperson. "Unfortunately,
with long lines at rental counters during the summer
months, some people panic when asked if they would like
to buy or decline car rental insurance. Faced with a
number of choices, some 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 it can leave a consumer dangerously underinsured."
Before
renting a car, the I.I.I. suggests that you make two
phone calls — one to your insurance agent or company
representative and another to the credit card company
you will be using to pay for the rental car. Here's
how they can help:
Insurance Company
Find out how much coverage you currently have on your
own car. In most cases, whatever coverage and deductibles
you have on your own car would apply when you rent a
car, providing you are using the car for pleasure and
not for business. Remember, if you have dropped either
comprehensive or collision on your own car as a way
to reduce costs, you will not be covered if your rental
car is stolen or damaged in a collision. In this case,
you may want to purchase the collision damage waiver
from the car rental company.
Credit Card Company
Insurance benefits offered by credit card companies
differ by both the company and/or the bank that issues
the card, as well as by the level of credit card used.
For instance, a platinum card may offer more insurance
coverage than a gold card. To know exactly what type
of insurance you have, call the 800 number on the back
of the card you will be using to rent the car. If you
are depending on a credit card for insurance protection,
ask the card company or bank to send you their coverage
information in writing. In most instances, credit card
benefits are secondary to either your personal insurance
protection or the insurance offered by the rental car
company. If you have more than one credit card, consider
calling each one to see which offers the best insurance
protection and travel assistance services.
At
the Rental Car Counter
Since insurance is state regulated, the cost and coverage
will vary from state to state. Consumers, however, can
generally choose from the following coverages: (CONTINUE...)
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