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Inside this Article
Should
I Buy Rental Car Insurance?
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Rental car
agencies have a menu
of insurance policies they would like to
sell you.
While each policy
could be of some benefit under the right
circumstances, you should review each plan (its
provisions, limitations, and exclusions) before
making a purchase.
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It is a good idea to
request the detailed information from an agent at the
rental office, as most companies only provide a
summary on their Web sites. Keep in mind; you may not
need to buy this additional car insurance
because you have auto insurance from your own car
insurance company. Generally speaking, when you
rent a car, the liability coverage limits you have in
your own auto insurance policy remain in
effect with the same limits. In addition, the
comprehensive and collision coverages you have in your
own auto insurance policy remain in effect with
the same deductibles. You do have comprehensive and
collision coverage don't you?
How Much Car
Insurance Should You Buy? For a listing of
coverage types and definitions. You may also have some
kind of additional auto insurance coverage
through your credit card but it is important that you
check your credit card information for specific
details. Some cards only offer coverage if you rent
your car from a particular agency. Some limit the days
for which coverage is available. Some will only
provide coverage for certain types and/or classes of
cars. With some cards, the coverage is not automatic
and you must enroll in a program to get coverage. Some
cards that advertise automatic rental insurance
really only reimburse you for the deductible that you
would have to pay under your regular insurance
policy. Still others may provide only collision
and comprehensive coverage, leaving you exposed for
personal injury or property damage to others. Rental
car agencies typically offer liability coverage in two
parts - a supplemental liability policy protects
against claims from others and a Loss Damage Waiver (LDW)
covers the rental car. LDW is not technically insurance;
rather, it is a company's agreement not to hold the
consumer liable for loss from all or part of any
damage to merchandise.
Before you rent a
vehicle, realize the charges you could be responsible
for and how these charges are covered or not covered
by both your own auto insurance policy and the car
insurance the rental company is offering.
If you suffer a loss
that is not covered under your auto policy, check your
other insurance policies. For example, if
personal property has been stolen from your rental
car, it may be covered under your homeowners or
renters policy. Similarly, certain medical policies
may cover costs of injuries not covered by your car
insurance policy.
As always, check with
your car insurance company to find out exactly
what is covered under your own auto insurance
policy.
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