Renting A Car

Many people purchase insurance at the car rental counter without knowing that their existing auto policies or credit card benefits probably already cover their needs. Here are tips from the Insurance Commissioner's Office to find out whether you need the insurance that is offered to you when you rent a car.

Ask your insurance agent or insurance company if there are any situations in which your existing auto policy would not cover a rental car.

If your current auto policy doesn’t offer coverage for a rental car, see if an insurance rider can be added for a small fee.

Ask your credit card company if it provides rental car coverage and, if so, what the limits are. Many credit cards include some level of collision and theft protection. In most cases, these benefits are secondary to your personal auto insurance or the car rental company’s insurance, meaning the credit card company will only pay claims after other insurance coverage has been exhausted.

If you lack personal auto insurance and your credit card does not provide benefits, then it might be wise to purchase the liability insurance and collision damage waiver at the car rental counter.

Keep in mind that if it is a longer-term rental (e.g., a week, a month or more), there might be limitations on the coverage your existing auto insurance policy provides. Check with your insurance company or agent for details.

When traveling on business, a personal auto policy will generally not apply, so check with your employer for guidance.

A national survey of 632 consumers, conducted in September 2007 by the National Association of Insurance Commissioners, found:

Approximately 42 percent of respondents said they were either thoroughly confused or had only a rough idea about insurance coverage when renting a car.

34 percent of respondents said they purchased the rental company’s insurance just to make sure they were covered.

24 percent of consumers were not sure whether their credit card provided insurance coverage when renting a car.