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!