Car Rental Insurance A Redundant Expense . . . Or Is it?

"You want the insurance, right?" asks the young man behind the counter at ACME Car Rental. "You know, like just in case. You know. Right?"

Maybe you know, maybe you don't. You stare at the legal pad-size document, and squint to read the Collision/loss damage waiver, liability coverage, medical payment coverage, personal injury protection, and so on all printed in 8 point type.

Here's our advice. Before you rent a car, review the coverage on your personal car insurance policy. In many policies, the coverage your auto policy extends to a rental car. So buying rental car insurance may duplicate the coverage you already have.

If you are unsure, give us a call. We'll review the following with you:

·   Does liability, comprehensive, and collision coverage and any deductibles extend to rental car agreements? Coverage may not apply if a rental car is stolen or damaged, so you may need supplemental.

·   Are towing fees for rental cars covered?

·   Does your homeowners or renters insurance extend to personal items in a rented car?

·   Does your auto policy offer loss of income coverage? The rental car company may charge you for what they could have earned had a damaged car not needed repair.

Also, call your credit card company. If you pay for a rental car with a major credit card, the card issuer may offer secondary car rental insurance at no charge. Note: Coverage extensions from your existing policy or your credit card may not apply if you’re renting a car for business.

Armed with the above answers, review your rental coverage options. And remember: Never sign anything or agree to coverage without reading the policy thoroughly.