By Emily Miller
Long gone are the days of simply renting a car by the day or week from the closest established rental car company. Nowadays, you can rent a car by the hour, from almost any location, or even use a car-sharing service to rent someone else’s personal vehicle.
However, the importance of protecting yourself with the right type and amount of car rental insurance has not changed, according to the Insurance Information Institute.
“When it comes to car rental insurance, the more things change, the more they stay the same,” said Jeanne M. Salvatore, senior vice president and chief communication office for the I.I.I. in a press release.
To help protect you this summer, the I.I.I. has compiled a series of helpful tips and tricks regarding insurance coverage, as unexpected life events could cause serious financial complications if you’re not properly insured.
“We have for years recommended consumers make two phone calls before renting a car,” said Salvatore. “One to their insurance professional, and another to the credit card issuer whose card will be used to pay for the car rental. That advice is still spot on and remains the best way to make sure you are properly protected when you rent a car.”
Industry experts recommend calling your insurance professional first to determine how much coverage you already have and if you need any additional coverage.
In most cases, whatever insurance and deductibles provided by your auto policy would apply to a rental car, providing you are using the car for recreation, not business. However, if you have dropped either comprehensive or collision on your own car as a way to save money, you will not be covered if your rental car is stolen or damaged in an accident, according to the I.I.I.
In addition, check to see if your insurance company pays for administration fees, loss of use or towing charges, as some companies may provide an insurance rider to cover some of these costs. Lastly, if you do not own a car and a frequent renter, ask about a non-owner liability policy.
Your second call should be to the credit card company you’re using to rent the vehicle. Most companies provide some level of insurance for rental cars – to find out the details of what is covered, call the number of the back of your card and ask them to send coverage information in writing.
In most cases, credit card benefits are secondary to either your personal auto insurance policy or the insurance coverage offered by the rental car company.
Keep in mind that coverage varies from company-to-company and most do not provide liability coverage.
By law, rental companies must provide the state-requires amount of liability insurance, which is generally low and doesn’t provide much protection.
The coverage you can get at the rental car counter is fairly standardized and generally includes the following options:
· Loss damage waiver (LDW)
· Liability insurance
· Personal accident insurance
· Personal effects coverage
However, car sharing services and hourly car rental providers are not standardized when it comes rental insurance coverage. For example, some may include insurance coverage in the cost of the rental while others may not.
This makes reading the fine print and policy information especially important before using the service. Don’t be afraid to call the company and ask for additional information.
“Before renting a car of any type, make sure that you understand all of your insurance options in the event the car is stolen, damaged or you get in a crash with another driver,” said Salvatore. “It may take a little more time and cost a little extra money, but it is certainly better than finding out too late that you are legally responsible for a car you don’t even own.”
