subject: How To Save Money At The Rental Car Counter [print this page] We have all experienced the dreaded sales pitch at the rental car counter when the discussion of additional insurance comes up. This is a huge profit center for rental car companies who train their clerks with cleverly written sales scripts to practically scare you into purchasing some type of rental car insurance upsell.
How To Save Money At The Rental Car Counter
In many cases your personal insurance may be adequate, but the best thing is to be well informed and well prepared ahead of time. Start by being familiar with these four common types of of rental car insurance programs. Keep in mind that insurance is regulated on a state by state basis, so depending on where you are, the cost and types of coverage will vary.
1) Loss Damage Waiver (LDW)
Although not officially an auto insurance product, LDWs relieve (i.e., "waive") car renters of financial responsibility if their rental car is damaged or stolen. In addition, coverage is typically included to pay for the losses incurred by the rental company while a damaged car is out of commission.
Loss Damage Waivers may become void if the accident was caused by speeding, driving on unpaved roads or driving while intoxicated. If you already have comprehensive and collision insurance coverage on your own car, contact your own personal auto insurer to find out if paying for an LDW on a rental car would be duplicating coverage you already have. LDW coverage generally costs between $9 and $19 per day.
2) Liability Insurance
Car rental companies must meet the minimum required amount of liability insurance dictated by the state law in which they operate. Generally, these amounts are low and do not deliver much protection. Again, knowing ahead of time what level of liability insurance protection you have on your own car may save you money. If your personal coverage is sufficient, you can consider skipping additional liability protection. Otherwise you will be facing an extra cost between $7 and $14 a day.
A different insurance option to consider is an umbrella liability policy. These policies are inexpensive and provide big coverage (usually starts at one million dollars). This is one of those policies that lets you sleep better at night and can cost as low as $10 per month. Umbrella liability insurance provides extra protection above and beyond what's included in your auto insurance and homeowners or renters insurance. If you do not own a car and rent cars often, consider purchasing a non owner liability policy. This provides both liability protection when you rent a car, and also when you borrow someone else's car.
3) Personal Accident Insurance
Personal accident insurance offers coverage to you and your passengers for medical and ambulance bills for injuries caused in a car crash. If you have adequate health insurance or are covered by personal injury protection under your own car insurance, you may not need this additional insurance. It usually costs about $1 to $5 a day.
4) Personal Effects Coverage
Personal effects coverage protects you if items are stolen out of the car. Sounds good, but keep in mind that if you have a homeowners or renters insurance policy that includes theft coverage which occurs outside the premises of the house, you are generally covered for theft of your belongings away from home too (minus the deductible). If you purchase this coverage through the rental car company, it generally costs between $1 and $4 a day.
For those of you who travel often with expensive items such as sports equipment, musical instruments and equipment, jewelry or cameras, do a price comparison between personal effects coverage and purchasing a personal articles rider under your homeowners or renters insurance policy. With this rider, your valuables are protected both at home and while traveling anywhere in the world.
Good Information And Planning Saves Money
As you can see from the different types of rental car insurance, your car rental bill can easily jump $20-$40 per day if you feel compelled to select some or all of the four common types of rental car insurance programs. By planning ahead and understanding how your own personal insurance works, you can save money at the rental car counter.
