Every time you rent a car, you won’t get away from their counter without either accepting or rejecting their form of car insurance, known as loss damage waiver (LDW) and collision damage waiver (CDW). Is this insurance necessary? It’s best to find out in advance, before you rent the car.
There are a couple ways you may already be covered. The first place you should look is your own auto insurance. Contact your insurance broker and find out if your collision and comprehensive insurance covers you in a rental car. Where you are renting the car will also matter, you may be covered in Canada and the United States, but not in other countries.
The second form of coverage may be the credit card you use to pay for the rental car. Check the agreement that came with your credit card to see if you have coverage for a rental car. If you are not sure, call the number on the back of your card. You may want to ask for the details of this coverage in writing as all cards are not the same and may not provide complete coverage.
With these forms of coverage already available to you, you may not need the insurance offered by the rental car companies, just be sure before you head out on your trip.
This wraps up the first week of articles in the Insurance You Can Do Without series. I’ll have another four posts in the series in a month!
- 7 Credit Card Tips From ING Direct
- Take Advantage Of Manufacturer's Warranties, But Don't Buy Extended Warranties
- How To Save Money On Your Auto Insurance.
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I hold a foreign driver’s license and though I have car insurance, my car insurance does not cover a rental car overseas. So I guess for people like myself, those car insurance matter.
I was aware of coverage for rental cars on personal auto insurance but I never heard of coverage on credit cards for rental insurance. I sure learn something new today and in fact I am about to make a call see if I have this kind of insurance. Thanks for the tips!
Its true that in many cases you are already covered by your current policy or in some cases your credit card you used to reserve the car. Of course this all depends on the class of the vehicle.
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