Rental Car Insurance - Should You Get It?

When planning to apply for rental car insurance a lot of questions come to mind. These questions confuse us as to whether to apply for it or not. Furthermore, one wants to know whether the auto insurance at present covers the rented cars or not. The insurance for a rented car will cover theft or a damaged rented car and you will not be held liable for it.

When you are to apply for rental car insurance you need to consider a few things. Firstly you should check with your own personal auto car insurance and see whether it will cover the rented car or not. You should also find the auto rental insurance type that is covering you with the help of your credit card company.

It is more likely that the auto car insurance will cover the rented car if you have rented it for the purpose of leisure and not for business. The existing auto insurance coverage and the deductibles will apply to the car rented. Remember if it is providing coverage then find out the type as well. Also, check for the offers by auto car insurance as they will be less expensive than getting it from a rental company.

It is advisable to apply for a rental through your credit card. This will give you a variety of insurances depending on the bank providing the credit card, card type etc. In general, the insurance will only cover for the damaged car and not the property, personal belongings or liabilities.

These are few things that you should consider and ensure that you get firsthand knowledge before you decide to get rental car cover.

CDW Insurance

CDW insurance stands for Collision Damage Waiver insurance. It is a term that might be unfamiliar to a number of UK drivers, more accustomed to the basic distinctions between third party, third party, fire and theft, and comprehensive insurance cover available on their domestic motor insurance policies. CDW insurance, on the other hand, is widely used in the car hire industry around the world to provide cover for the person renting the car against the risks of loss or damage to the hired vehicle.

Together with the minimum level of insurance against claims by third parties and the risk of the vehicle being stolen, the Collision Damage Waiver generally represents the basic insurance package that will be offered by the car rental company with the vehicle. Like many things in life, however, covering just the minimum requirements is rarely enough for decent peace of mind. This is true of CDW insurance.

First and foremost, CDW insurance is designed to give the hirer of the vehicle a degree of financial protection in the event of his or her damaging the vehicle in a collision - the insurance will indemnify the hirer against the worst of the repair costs. However, it is not what UK drivers, for example, would recognise as comprehensive insurance. With typical CDW policies, several areas of damage are specifically excluded from the cover. These areas include damage to the roof and the underside of the vehicle as well as repairs to broken, cracked or chipped glass windows, and punctured or otherwise damaged tyres and wheels.

Another major consideration to bear in mind with respect to CDW insurance is the excess it usually attracts. The excess, of course, is the proportion of any repair bill that the policy holder must pay him or herself. In the event of any claim under the CDW insurance, the excess represents an uninsured portion of the loss or damage. Still worse from the policy holder's point of view is that, in the event of any claim for repairs, it is the excess paid by the policy holder that must be paid first. The effect of this is that if the repairs cost less than the excess, then the policy holder will be footing the entire bill for the repairs. Clearly, this is an important consideration, especially since the typical excess on the CDW insurance for a car rental in the UK, for example, is likely to be at least £600 - and possibly more.

To reduce this liability, therefore, most customers take up the offer of the car hire company to purchase further insurance - CDW excess insurance - in order to remove or reduce the amount of excess on the CDW insurance. However, all of the shortcomings of the rental company's CDW insurance can be avoided entirely by purchasing a complete insurance package for the car hire in advance, from a specialist insurance provider. Not only will such an independent provider quote a far more competitive rate (up to half of that quoted by the car rental company), but the insurance provided is likely to be considerably more comprehensive in its scope.

An Independent Look at Rental Car Insurance

When you step up to the Rental Car Counter the Rental Agent is going to ask you if you want to purchase insurance for the rental vehicle. If you say no they will ask you to initial next to each coverage that you decline. The decisions that you make in these few moments could have a dramatic impact on your financial situation. Deciding if you need to purchase the auto insurance offered at the Rental Car counter before you arrive can keep you from incurring a serious financial loss or wasting your money on insurance that you already have or do not need. One of the questions that we are asked most as auto insurance agents is "Do I need to purchase the auto insurance offered at the rental car counter when I rent a car?" The answer to this question is maybe. You may be able to provide coverage for the rental car using insurance policies you already own or you may decide you need to purchase additional protection. In this article we are going to give you the information that you need to make these crucial decisions.

When You Rent A Car There Are Several Ways To Secure Coverage For It Without Having To Purchase Coverage At The Rental Car Counter.

Transfer Coverage From Your Existing Auto Insurance Policy - If you are going to be renting a car and you have an existing auto insurance policy you should take your insurance I.D. card with you when you rent the car. The car rental company may require it and it can save you a lot of time and aggravation if you are pulled over by the police in your rental vehicle. The coverage and deductibles on your own auto insurance policy will automatically transfer to cars that you rent as long as you are not using the rental car for business purposes or renting in another country. You should check the declarations page of your personal auto insurance policy to find out if you currently carry Property Damage Liability, Comprehensive and Collision coverage. Make note of your Property Damage Liability limit and your Comprehensive and Collision Deductible. If you are renting a car in another country you should definitely consider purchasing coverage at the rental counter as most personal auto insurance policies only cover their owners in the country where the policy was written.

Damages to your rental car will be covered by the Property Damage Liability portion of your personal auto insurance policy if you are renting the car for pleasure use. However, if you were involved in an accident that is covered by your auto insurance policy and your car is in the shop being repaired. Damages to the replacement car that you rent will be covered by the Comprehensive and Collision coverage portion of your personal auto insurance policy. That means that you will have to pay the deductible for these coverages if you damage the rental car.

Use Coverage Provided By Your Credit Card - Most major credit cards advertise rental car insurance as one of the benefits of owning their card. The truth is that the coverage that these cards provide usually only pays after your personal auto insurance policy limits have been exhausted and only if you used their card to pay for the entire price of the rental. The level of protection with credit cards seems to change on a daily basis so we recommend calling your credit card company to determine your exact level of protection for rental cars. When you talk to the credit card representative ask them for information about Liability, Comprehensive and Collision coverage for rental cars. It is best to get this in writing as it is not unheard of to get several different answers from the same credit card company. You should also ask if there are any exclusions. Many credit cards exclude coverage for luxury or exotic car rentals.

Purchase A Non-owned Auto Insurance Policy - If you rent cars frequently but you do not have your own auto insurance policy you can save yourself a lot of money by purchasing a "Non-Owned Auto" Liability policy. This policy provides you with the same type of protection as the Excess Liability coverage offered at the rental car counter. These types of policies usually cost around $300 a year and will cover you when you are driving any private passenger automobile. This policy only provides protection for Bodily Injury and Property Damage Liability. It will not pay for damages to your rental car so you will still need to purchase the Collision Damage Waiver or use one of the coverage methods we discussed earlier.

If you are unable to secure coverage by using any of the methods listed in the previous chapter you should seriously consider purchasing coverage at the Rental Car Counter. It can be hard to get an honest advice about these coverages from the rental car agent because they are paid a commission every time they sell it to you. Don't worry; we have provided you with all of the help you need below.

Collision Damage Waiver (CDW) - This protection is also called the loss damage waiver (LDW) by some rental car companies. It is often referred to as insurance but this is incorrect. It is actually a waiver of responsibility. When you purchase this protection the rental car company waives your responsibility for damages or theft of the rental car. If something were to happen to the car you would simply file a quick claim form when you returned the car and the rental car company would pay to repair or replace it. The price for this protection usually ranges from $15 to $25 depending on where you are renting.
Caution: This coverage may become void if you cause an accident while breaking the law. This includes excessive speeding, driving off road or driving while intoxicated so be careful when you are driving a rental car or any car for that matter.

If you carry a minimum limit such as $10,000 for Property Damage Liability coverage you may want to consider purchasing the Collision Damage Waiver because this low limit may not be enough to pay for repairing or replacing the rental car. Remember you could also be held responsible for damages to other peoples car's or property if you are involved in accident and found to be at fault and Rental car companies will charge you for loss of rental income for the car that you damaged. These are all important factors that should be considered when deciding if you should purchase the Collision Damage Waiver.

Another advantage to this coverage is that there is no deductible. This can come in handy if you were involved in an accident that is covered by your auto insurance policy and you are renting a replacement car while your car is in the shop being repaired. You see in this scenario any damages to the rental car would be covered by your Comprehensive or Collision coverage which means that you would have to pay the deductible.

Excess Liability - Car rental companies are required by law in most states to provide a minimum amount of liability protection for renters of their vehicles but this is rarely enough to protect your interests if you seriously injure someone in an accident. The liability portion of your personal auto insurance policy will transfer to your rental car so you have adequate limits of bodily injury and property damage liability on your personal auto insurance policy we would not recommend purchasing this coverage. This coverage would only pay after your personal auto insurance policy limits are exhausted. This price for this protection is around $10 to $13 dollars per day for 1 million dollars worth of excess protection.

Personal Accident Insurance - If you or your passengers are injured in an accident or as a pedestrian this coverage will pay for your medical expenses and ambulance fees if needed. If you live in a "no fault" state, have health insurance or carry medical expenses coverage you probably already have this protection and do not need to buy it from the car rental company. Check your auto insurance and health insurance policy to find out for sure. A claim for this type of loss on your personal auto policy will not cause an increase in price so if it is covered on another policy there is really no benefit to buying it from the car rental company. The price of this protection usually runs from $2 to $5 a day depending on where you rent.

Personal Effects Coverage - This is coverage for theft of you or your passenger's personal items such as cameras, camcorders or Laptop computers. This protection may also be provided on your homeowners or renters policy if you have one so you may not need to buy it from the rental car company. However, homeowners or renters deductibles are usually $500 or higher and all of your articles may not be covered. Check the declarations page of your policy for your deductible and the exclusions section to find out if the items you are taking with you are covered.

One of the benefits of purchasing this coverage from the rental car company is that you usually do not have to pay a deductible. You simply file a claim when you return the rental car and you are reimbursed for the theft of your items. You will usually need to prove ownership of the items that you claim were stolen by providing the rental car company with receipts or other proofs of ownership. You should also ask the rental agent if any exclusions apply to this coverage prior to purchasing it. The price for this protection is $2 to $5 dollars a day.

It is better make all of your rental car insurance decisions before you step up to the rental counter. Nobody should be forced to make snap decisions on issues of this much importance and now you don't have to. We hope that you have found the help that you needed in this handbook. I love to get feedback on this article so please send your questions or comments to info@theautoinsurancebuyersguide.com. I look forward to hearing from you!

Car Hire - Insurance Damage Excess - UK

Most car hire companies have a damage excess as a condition of their car rental insurance. A large percentage of car hire cost to the car rental company is taken up by the cost of insuring the car. To reduce their costs they have an excess amount on their policies.

The excess amount relates to the "collision damage waiver" part of the insurance cover. The excess amount is for damage to the rental car. The amount of excess can vary depending on the size of the car and the car rental company but is likely with the major companies to be in the region of GBP 600.00.

When you arrive at the rental location you will given the opportunity to purchase cover for the eventuality that the vehicle is damaged and you are liable for part of the cost of repair.

There is usually more that one product offered. The products might differ in the amount the excess is reduced by. Some will, for example, only reduce the liability to GBP 200.00 whilst others will reduce the policy to zero. Some of the policies might have personal accident cover included. An example of the cost of reducing the excess to zero would be GBP 13.00 per day on top of your rental cost.

You are not obliged to purchase any of these products. However you should be aware if damage is discovered on the car when you return and there was no record of that damage being on the car prior to your rental, you could have as much as GBP 600.00 taken from your credit card. The cost of repair is usually assessed by the rental staff who are given guidance on what to charge for a particular type of damage.

There are insurance products in the market place that will provide cover for the possibility that money is taken from your card. The cost can be significantly cheaper than products offered by the car rental company. If you purchased a product from an independent supplier you would decline the waiver offered by the car rental company.
If the vehicle was damaged the car rental company would deduct the cost as normal from your credit card, but you would then be able to claim it back on your insurance policy.

Some credit card companies, particularly in North America, have car rental insurance for platinum and gold card holders. This insurance is usually to cover damage to the car, but not the third party risk. This can reduce the cost of the rental. However, if for example a car was rented on the basis of this insurance and the car was damaged to the extent that it was "written off" for repair purposes. The car rental company could take the total cost of replacing the car from your credit card. You would then have to claim that cost back from your credit card insurance.

It may be that actual cost of repair to the car is less than the amount charged to your credit card. It would advisable to contact the company's insurance department after the car has been repaired if you think this may be likely. You may have any difference in repair amounts paid back to you.

In the event of damage, the car rental company will take the money from your credit card regardless of whether a third party may be responsible. If at a later stage the car rental company are able to recoup money from the third parties insurance, then you would be entitled to ask the amount taken from you was refunded.

What is Car Hire Excess Insurance?

If you're hiring a car, you may face a potential financial risk relating to the excess on the policy. Car hire excess insurance is something that offers you protection against it.

Renting a car - something to note

Hiring a car in today's internet world is relatively easy.

Yet there is an issue or two that some hirers may be unaware of.

If you're hiring in the UK and most of the EU countries, your car will typically come with various forms of insurance included in the rental cost.

As a general rule, that insurance will cover third-party liability risks and what's called CDW (collision damage waiver). It's CDW that protects you from the costs of needing to pay for any damage done to the rental car while you have it on hire.

You may, therefore, think that you're fully covered by insurance - but unfortunately you typically will not be.

You may still be liable for costs after an accident arising from:

- the excess - a sum of money that could be as high as £1600, which you'll be expected to pay towards the cost of any claims;
- inadequate third-party insurance levels in the standard cover;
- damage to areas of the vehicle (typically the glass, under body areas and tyres) typically not covered by in-the-price insurance.

You may find the financial risks here to be unacceptably high - perhaps running into thousands.

North America and Other Countries

It's worth keeping in mind that in some countries, most notably the USA, the rental price may include very little, if any, insurance. Typically it is purchased separately from the rental company or a car hire insurance provider.

Your options for car hire excess insurance

The rental company may offer you various forms of ancillary insurance, which they'll sometimes describe as car hire excess insurance or perhaps top-up cover.

This additional insurance typically covers things such as damage to the excluded areas of the car mentioned above and all, or part of, the excess.

It may also increase the level of third-party insurance protection you have available.

Typically cheaper options

You may be able to find the same or even better levels of protection against the excess and other potential additional charges through the online insurance providers that offer car rental excess insurance.

The savings may be substantial over similar products offered by the car hire companies.

Your decision

Taking out additional rental car insurance isn't obligatory but it may be a good idea.

The rental company will typically try to sell it to you at the point you're collecting the car - when you may not be in a position to compare their prices against others.

So researching ahead for car hire excess insurance might be something that could save you significant sums of money. Don't forget to check the small print too, as your cover will be subject to policy limitations, exclusions within the terms and conditions.

How to Find a Cheap AIG Long Term Care Insurance Policy

It is certainly possible to find a cheap AIG long term care insurance policy. First, let's learn a little bit more about AIG/American General and see if they may be a smart choice for your long term care insurance needs.

Who Is AIG Long Term Care Insurance Company?

AIG stands for American International Group, Inc. They are a world leader in insurance and also in financial services. They have offices and operations in over 130 countries world wide to serve their customers from all over the globe. American International Group, Inc. or AIG services institutions, companies and individual customers from around the globe with insurance policies ranging from auto insurance to life insurance and financial planning. They also offer retirement services and long term care insurance around the globe. If long term care insurance is new to you, you're probably seeking both information and a secure provider for your needs. Here are some answers to your questions.

What Is Long Term Care Insurance?

Your basic health insurance is designed to cover well and sick doctor visits as well as some emergency and surgical procedures. But what happens after your insurance has met its obligation financially if you still need care? It's not uncommon for injuries and illnesses to result in a lessened ability for patients to take care of their daily living needs. While this need is most commonly associated with the elderly, younger accident victim or suffers with both acute and chronic diseases often find them selves in this position too.

While Medicare will kick in full payment for up to 20 days and partial help for up to 80 in come cases, you need to ask yourself if your current financial situation can cover the rest. So what might that be?

How Much Can I Expect To Pay For Long Term Care Without Additional Insurance?

The cost of long term care can be budget breaking. In today's market a person without long term care insurance can expect to pay over $1,000 per week and upwards of $54,000 a year. In years to come these cost will continue to rise. Paying these costs out of your own pocket can lead to financial ruin rather quickly. With long term care insurance you can save yourself from these outrageous medical costs. Also, consider the potential headaches it will save your loved ones if you already have this plan in order.

I Am On A Tight Budget; Does AIG Have A Plan For Me?
AIG has long term care insurance plans to fit every budget, income and lifestyle. By purchasing your policy earlier in life you will have lower premiums since you are not a high risk for needing long term care insurance in the near future. With AIG long term care insurance they can help you to customize a long term care insurance policy that is right for you. With each plan you can pick the amount of coverage you wish to have that will fit into your budget.

What Do You Mean By Picking The Amount Of Coverage I Want?

Picking the amount of coverage means that you can decrease the amount of medical expenses your long term care insurance policy will cover. For instance one day of long term care in a facility cost about $150. You can choose for your policy to only cover up to $100 of the fee for the medical care at the facility, more or less. Of course you will be left to cover the rest but at least you will have some medical expense coverage and protection.

You can also choose to lower the amount of days your long term insurance policy will cover your medical expenses. For instance, you can choose to have up to 6 months of long term care medical expenses covered instead of 3 years. Lowering the amount of coverage your policy will give you will also lower your premiums and offer you a more budget friendly option. AIG long term insurance company is there to help you pick and customize a long term care insurance policy that not only offers you coverage but is also affordable.

Car Rental Insurance - A Necessary Expense

It is a common practice for some people to rent a car especially when they are on a business travel. These people simply approach the car rental counter, pays for the rental amount but some of them refuse to avail of rental car insurance or waivers because they were thinking that such offers may only be additional expenses for them.

Many travelers do not pay for such coverages as they are uncertain and confused about it. Some believe that they are unnecessary and are only a devised scam by car rental companies to gain extra profit from the consumers.

However, one may never tell when an accident or mishap will happen. There may be some avoidable instances to save the rental car from nicks and wrecks, but certainly there are occurrences beyond the driver's control that may lead to the car's breakage or damages. Despite a number of people disagreeing with the necessity of driving an insured car, there are still lots of car users who ensure both their physical safety, the car's and their financial security.

It's best to know for every car renter, that such insurances are a way of securing his or her finances should an accident occur. Paying for repairs or worse is for the replacement of an entire vehicle may be more devastating than the misfortune itself.

If you are opting to rent a car, make sure that prior to the rental, you have already inquired from your agent about the personal auto policy that covers a rental car. If you have a credit card, ask your company what coverage if offers. Should a personal auto policy not include a rental car coverage, be polite in asking for the for additional rental insurance. It would also be wise that if you are a renter who finds that the information provided by a rental company is doubtful, the state insurance department may be consulted.

Aside from rental car insurance, other options offering similar plan are Loss Damage Waivers (LDW) and Collision Damage Waivers (CDW). Coverage for whatever loss or wreck to a rented vehicle is included. Such policies are in actuality are unregulated and are not insurance policies which is why it is essential to first read the waiver before deciding. Reckless driving such a driving under the influence of alcohol or causing an accident, may result to the waiver's dissolution. These waivers are a means to protect the rental companies from renters who may be careful in driving their own cars, but not rental cars. A Supplemental Liability insurance is also another alternative that covers item which are not included in the renter's own insurance policy for rental car. Personal Accident Insurance deals with expenses brought about by injury or death.

As a conclusion, a rental car insurance, though at the onset of a car rental may seem additional cost on the part of the consumer is not really a scam or a rip-off. In actuality its saves the car rental drivers from more serious expenditures if the rental car is damaged. It is true that there are less chances of having an accident set upon you or the rented car. However, accident are neither planned. Therefore it is better to be safe and secured rather than be sorry in the long run.

Automobile Insurance Smooths Your Path

It has been well said that safety is the cheapest and the most effective policy. As a matter of fact, if you are extra cautious and follow all the rules of traffic then at least you can justify yourself in certain critical situations. However, destiny always has something in store for you, may be sweet or sour. It is also a fact as we are mere human beings we can't fight against it. But, yes we can, at least take preventive measures as prevention is always better than cure. Here in this context the automobile insurance can be mentioned. The rules of this policy come associated with various range of situations and most interestingly the aspects of the policies might often differ from state to state. Though, there are certain laws of Insurance which are universal but some important areas needs to be clarified and be aware of.

In cases of accidents, the rules of automobile insurance in all the states are almost the same. In India, automobile insurance is done mainly by prominent financial institutions and various banks which are in turn hooked up by the individual car companies or owners. This type of insurance basically covers the damage or loss which are incurred by the vehicle. You can take the support of the traditional method or the most advanced technology i.e., the Internet to get the latest information regarding the automobile insurance and travel insurance. You can even take into account various considerations while searching such affordable auto insurance rates. Various factors such as driver history, model of the automobile etc., would be taken into account by the insurance company. Moreover, if you use the Internet option then the process of application would also be a very simple process and would not consume much of your time. Just select your appropriate policy, click onto it to get access to the terms and conditions. After that when you are satisfied, you can go for applying the form at ease.

The major players in the automobile field are Ashok Leyland, HMT Tractors, Royal Enfield, Chevrolet LML India Swaraj Mazda Ltd., BMW Kinetic Motor Co. Ltd., Sonalika Tractors, Force Motor, Monto Motors, Toyota, Kirloskar Motors, Ford Motors, Nissan Motors TVS Motor Co., Hero Honda, Reva Electric Co., Volvo, Hindustan Motors, Rolls-Royce Motor, Yamaha Motor etc. while one of the eminent automobile insurer is ICICI Lombard.

The automobile insurance is basically done to safeguard or protect you against any sudden unfortunate events such as accidents or loss of the vehicle. However, for such preventive measures you would obviously have to dent your pocket, but yes it is quite affordable. For this, you are required to pay a specified amount of money at certain intervals for a particular period of time. As such, in case any loss has been incurred by the vehicle then the individual would get the insured amount to meet the loss. It must be borne in mind that such policy covers various other issues such as sum invested for repair works, damage occurred to a particular part or the vehicle has been totally damaged. However, you would get the insured money only after the investigation process gets completed.

This policy can be opted as you can safeguard your vehicle from various consequences such as damages occurred due to theft, fire and vandalism etc. However, while selecting such a policy you must be sure that your policy has some basics of coverage such as collision coverage, deductible, comprehensive coverage, effective date, glass coverage, endorsements, and exclusions.

Is Car Rental Insurance Right For Me?

Sadly, the insurance that comes as 'basic' from the car rental company may not quite cover all the risks. To begin with, in some countries you may find that the rental price actually includes little or no insurance at all and the rental company will offer it to you as a chargeable extra. Even if car rental insurance is included in the rental price, you may find that it contains limitations that you're unhappy with.

It is worth examining closely the third-party liability cover (the insurance that covers claims from others than you have injured them or damaged their property) to make sure that it is not capped at an unrealistically low maximum payout. This does not apply in the UK where cover must be unlimited by law but in some countries the cap could be set at a level far below potential court awards.    

It is also likely that the CDW (collision damage waiver that covers damage to the rented car) will have exclusions that mean it will not pay if areas of the car such as the wheels, tyres, roof, windows and undercarriage are damaged. The costs here could be high following an even trivial accident.

Finally, the car rental insurance policies provided by the rental companies will probably contain excess. The excess is an amount of money that you could have to pay towards the cost of an accident and claim. Typically it is set between 500 and 1500 pounds. If you have an accident that costs say 1000 pounds to repair and the policy has 750 pounds excess, then you'll have to pay that 750 pounds.

If you find these things unacceptable, what can you do about it?

The car rental company will offer additional forms of insurance that mean they will increase the amount of third party cover, reduce or remove the excess and possibly increase cover to the excluded areas of the vehicle. When purchased from a car rental company, these forms of insurance can cost several times more than when they are purchased from a specialist insurance provider through the Internet.

The specialist providers sell a range of policies to cover some or all of the above gaps. They work on the basis that if you have to pay the rental company for excess or damage to an excluded area of the vehicle, your direct policy will reimburse you.

A major advantage of car rental insurance purchased from a direct provider is that it is sold to you the policyholder and by the day or year. What this means is that it will cover you against the above risks for any cars rented during the period - subject to certain terms and conditions. If you're renting regularly this could not only save you very significant amounts of money but also lots of time as nobody enjoys the 'extra insurance' debates at the car rental collection desk. It may be a good idea to research the specialist providers further if you're looking for a good and flexible deal.

Rental Car Insurance - Need Car Insurance For Your Rental Car?

Traveling can be a whole lot of fun especially for holiday travelers looking forward to some rest and recreation. But whether you're traveling to attend a professional conference or to sip martinis off an island beach, one thing remains common besides hotel accommodations - rental cars. If you've ever signed your name on the dotted line for a rental car, you would, in all likelihood, have contemplated whether or not to purchase the car damage waiver offered. Do you need car rental insurance for your rental car?

Don't be so quick to say no even if your insurance policy covers rental cars. True, many travel experts will tell you paying car rental insurance is an unnecessary expense. They say so because some personal policies cover damage to a rental car. Premium credit cards may also come with accident insurance. All these notwithstanding, you are probably best off signing the agreement with your car rental company so that you absolutely won't be held liable if the car in questions is damaged or stolen. Here's why:

1. Not all policies cover car rentals outside of the country. Often, coverage is for US only. If you're renting a car in Paris or London even with the same rental company you use back home, you'd be burdened with charges when you don't carry car rental insurance and meet an accident while driving it.

2. Premium credit cards normally offer secondary accident coverage. Very rarely would you find a credit card that offers primary accident coverage. What difference does this make? A secondary insurer pays you only after you've filed claims with a primary insurer.

3. Your policies do not cover all charges the rental company makes on your credit card. Damage, from the point of view of the car rental company, is not only the cost to repair the vehicle in question. Understanding this is perhaps the biggest reason why the answer to the above question is a resounding yes.

What You're Liable For

When you meet and accident or lose a rental car without a CDW, your car rental company will charge you what the CDW would have covered. Here's a short list of mostly likely charges that will appear on your credit card (yes, they have that little detail, don't they?):

Cost of Repair - this is common and this is what your personal policy normally covers.

Lost Income - the amount of money the vehicle rental company lost while the vehicle is out of commission.

Diminution of Value - an estimated sum the car rental company would lose if it sells the vehicle.

Keeping Yourself Protected

Car rental insurance could be such a hassle, true. But if you'd rather be sure you won't encounter an even bigger hassle later, you'd let yourself get sold on the pitch and take the collision damage waiver or take out a car rental insurance. Otherwise, if you'd like to assure yourself it's not an unnecessary expense, read the agreement you're signing with your car rental company. Make sure you have coverage for what they'd hold you liable when you meet with an unfortunate event.

Rental Car Insurance - Should You Buy Rental Car Insurance?

Your flight landed an hour late. Now, you'll be late for that important meeting. You can already imagine your customers sitting around a conference table waiting impatiently. You step to the front of the line at the car rental counter, with six other exasperated businessmen behind you who are late for their meetings, too. The rental agent plunks the contract down in front of you, and circles all the places on the contract that you're supposed to sign or initial. Then she stares at you, as if to say, "Hurry up!" The print is small. The sentences are written in Legalese. You'd like to stop and read the fine print, but you can feel the people behind you getting more upset. You thought you were renting a car for $35.00 per day. With all the add-ons, the cost is now $70.00 per day.

Oh...the pressure...the panic! You cave in, signing and leaving your initials in all the right places. You take your contract and keys and head for your car, inwardly feeling like a failure and mad because you didn't stand up for yourself.

If the preceding story is too familiar, there's hope just ahead!

It doesn't matter if you're a regular car renter or just an occasional traveler who needs to rent a car, you'll likely face these kinds of choices at the car rental counter. Some folks just decline everything. Some folks purchase all of the coverage offered.

But...are you wasting bunches of money on unneeded coverage or leaving yourself dangerously under insured? Before leaving on your trip, I recommend that you make two phone calls - one to your auto insurance company and another to the credit card company you'll be using to pay for the rental car. You'll need to find out if you have automatic coverage for your car rental from each company, and the various terms and conditions for that automatic coverage.

FIRST...CALL YOUR CAR INSURANCE COMPANY

In your personal or business auto insurance policy, there is coverage for damage to your auto. The Insuring Agreement in most policies says: " We will pay for direct and accidental loss to 'your covered auto' or any 'non-owned auto,' including their equipment, minus any applicable deductible shown in the Declarations."

Another phrase is VERY IMPORTANT!

"If there is a loss to a 'non-owned auto', we will provide the broadest coverage applicable to any 'covered auto' in the Declarations." Here's an example of how this would work for you:

You have two vehicles. One is a 2006 Toyota Camry with full coverage. It's worth $24,000. The other is a 1980 Chevy S-10 pickup worth $1,500 that you only use for trips back and forth to the local home improvement store, and you only have liability coverage on the pickup. If you rented a car and it got damaged, your insurance company would provide the full coverage for the rental car, which is the broadest coverage in your policy.

If you normally drive an older car with only liability insurance on it, there will not be any property damage insurance extended to the rental car. In this instance, you should either use the credit card's Collision Damage Waiver or buy the CDW from the car rental company.

Ask your insurance company representative how much coverage you have on your car. Ask if there is a limit of value on your Collision coverage. If there is a limit, and you drive a 7 year old Ford Taurus that's worth $5,500...and you rent a new Cadillac Escalade that's worth $55,000...will your personal auto insurance cover the damage to the higher valued vehicle? REALLY important to know this...you could owe the rental car company tens of thousands of dollars to repair or replace a high value rental vehicle if you're not properly covered.

Find out the limits of liability. Make sure that your limits are higher than the minimum limits required by your state. Limits above $100,000 per person/$300,000 per accident for Bodily Injury, and $100,000 for Property Damage are very inexpensive. Make sure that you limits are no less than that amount...higher would be better.

Find out what collision and comprehensive deductibles you have on your car, because those deductibles will apply when you rent a car and use your own insurance for rental coverage.

Make sure that you have Uninsured Motorist and Underinsured Motorist coverage on your personal or business policy. If you are in an accident with an uninsured motorist, and the accident is his fault, recovery will be practically impossible. Likewise with a motorist who is underinsured. Best to have your own coverage protection.

Q: What if I don't own a car, and don't have car insurance?

A: If you do not own a car, you won't have an automobile policy. You should buy the rental car coverage, both the CDW and liability coverage. Or, you should use your credit card's CDW and buy the optional liability coverage from the rental car company. If you're a frequent car renter, however, you can still buy a "non-owner" liability policy. This solution might save you money over the coverage available through the car rental company.

Q: What happens if my personal property inside the car gets damaged or stolen?

A: Most Collision Damage Waivers provide coverage for theft of the vehicle, but not any personal property stolen or damaged inside the vehicle. Check your homeowners or renter's insurance policy because you may have coverage through them for your stolen or damaged personal property. A deductible will likely apply.

Here's a super important tip! Some people think that, if they purchased the Collision Damage Waiver or used the CDW from their credit card, and the rental car got damaged, they don't have to report it to their own insurance company. They are hoping that because the CDW covers the damage, it won't affect their own insurance policy....and they won't get a rate increase. WRONG!!! Don't be misled into thinking that you can get away without reporting your accident to your own insurance company. In most accidents, more things get damaged than just the rental car. Even if your accident is just you running into a guardrail, whoever owns that guardrail is going to look to you to pay for the damages. Also, other people might have been injured. You could have a large liability exposure, and you might need your personal or business auto policy to cover your loss. Your insurance policy includes legal representation if someone files a lawsuit against you for damages.

If you're going to use your own personal or business auto coverage, decline the Collision Damage Waiver on the car rental contract.

NEXT...CALL THE CREDIT CARD COMPANY

Ask your credit card company about the benefits they offer. Each company is different, and each level of credit is different. For example, a regular card might have different insurance benefits than a gold or platinum card. Ask the card company to send you your benefits IN WRITING. If you're in a hurry, ask them to fax or email it to you.

Some cards may only cover collision and comprehensive, and leave you uninsured for liability. Some cards only offer coverage when you rent from a certain rental company. Some restrict the number of days of coverage. Some cards don't automatically cover you and require you to sign up for a particular program. Still others limit the kinds of vehicles you can rent. (see below for some exclusions)

If you have more than one credit card, call each one and find out the card with the best benefits. Then, use that credit card to pay for your rental car, and use their benefits.

If you're planning on using the credit card company's coverage, you must decline the Collision Damage Waiver shown in the rental car contract. Otherwise, the credit card company's coverage will become excess to the coverage in the rental car company's Collision Damage Waiver. "Excess" means that any other available coverage would pay first, and the credit card coverage would pay any remaining portion of the loss.

Credit card Collision Damage Waivers cover:

o vehicle damage
o theft
o loss of use
o towing

See your credit card company's written CDW for all the details.

Collision Damage Waivers exclude:

o Injury to anyone or damage to anything inside or outside the rental vehicle.

o Loss or theft of personal belongings.

o Liability

o Loss due to intentional acts, like DUI, drug use or other illegal activities.

o Off-road operations. If you rent an SUV and take it off-road, no coverage.

o Rental periods of more than 15 days within your country of residence, or more than 31 days in a foreign country.

o Vehicles that do not meet the definition of "covered vehicles," such as:

- expensive, exotic and antique vehicles

- certain vans

- pickup trucks

- other trucks

- motorcycles and ATVs

See your credit card company's written CDW for all the details.

CAR RENTAL INSURANCE

Most major rental car companies offer these four coverages.

o Collision Damage Waiver (CDW). This covers a rental vehicle damaged by an accident, vandalism, theft or loss of use. Costs range between $9 and $20 per day.

The most misunderstood part of car rental coverage is the Collision Damage Waiver, or sometimes called the "Auto Rental CDW."

Remember...the car rental CDW provided by the car rental company is not insurance. Insurance is regulated by each state. Collision Damage coverage is a waiver. The car rental companies agree to not hold the renter responsible if the rental car is damaged or stolen, and they guarantee that they will pay for certain damages listed in their coverage agreement.

In many cases, the waiver also provides "loss of use" coverage, which pays the rental company if the damaged or stolen car cannot be rented. In most states, car insurance policies don't cover loss of use. So, if you choose not to buy the Collision Damage Waiver, you might have a loss of use exposure if the rental car gets damaged. But if you're using your credit card's automatic coverage, it will pay for that loss of use.

Some car rental companies will require you to pay for repairs or replacement costs out of your own pocket up front, and then you have to get reimbursed by your own insurance company. Being forced to come up with thousands of dollars in immediate cash could ruin a vacation. You're protected from these up-front costs by the CDW. Read your rental contract CAREFULLY!

o Personal Effects Coverage. This provides coverage for theft or damage to personal items inside the rental car. Costs range between $2 and $5 per day.

o Supplemental Liability Insurance. This provides liability coverage up to $1 million. Costs range between $7 and $9 per day.

o Personal Accident Insurance. This covers you and passengers in your vehicle for medical expenses. If you already have personal health policies or travel policies, it won't be necessary to buy this optional coverage. It usually costs between $3 and $5 per day.

Corporate Travelers. If you're a frequent traveler for business, do one other thing. Check with your company to find out if they have a corporate travel policy. If they do, find out what that policy covers, and then simply don't buy duplicate coverage on the rental car contract.

Car rental outside your country of residence. Some insurers exclude coverage if you're driving in a foreign country. Some will cover you, but only a limited time. Some credit card companies cover car rentals outside your country of residence. Check with your insurance company and credit card company for specific details, and GET IT IN WRITING!

Q: Can I allow others to drive my rental car?

A: If you're using your personal or business auto coverage to cover your rental car, the chances are all "authorized drivers" are covered. An "authorized driver" is anyone listed on the policy. However, here's a BIG GOTCHA! If your teenaged son drives your rental car and he allows his girlfriend to drive the car, you're covered. If the girlfriend allows another person to drive, NO COVERAGE!

Some car rental companies have exclusions for young drivers. Some charge extra for young drivers. Find out this information BEFORE you arrive at the car rental counter.

Q: How do I file a claim if I've had an accident?

A: When you experience the damage or theft, immediately get a camera and take lots of photos of the damage, including any other autos or property that was damaged. Keep those photos! Notify the rental company IMMEDIATELY of the damage.

Report the damage to your own auto insurance company if you have personal or business coverage.

When you return the vehicle to the rental company immediately ask for:

o A copy of the accident report and any claim documents, which should show the amount you're responsible to pay, as well as any amounts that have been paid toward the claim.
o A copy of the initial and final auto rental agreements.
o A copy of the repair estimate or the paid repair invoice.
o A police report, if one exists.

So the bottom line is this:

If you have personal auto insurance, commercial auto insurance or corporate travel coverage, it is usually not necessary to pay for the Collision Damage Waiver or extra coverages offered to you by the rental car contract. Your situation may vary.

Get everything in writing, and make an informed decision. Then enjoy your car rental experience!

Travel Insurance: Prevention Is Better Than Bills

It is really fun going on a holiday trip. You will be so busy strolling around, doing what you do not usually do, like skiing, windsurfing and other activities worth spending your holiday with. Outdoor trip is really fun and entertaining. You are enjoying snow boarding but suddenly you broke your leg. We don't know when accidents may happen. It is just practical to get a travel insurance plan.

Travel insurance plan is a way to minimize the considerable financial risks of traveling. These risks include accidents, illness, and missed flights, canceled tours, lost baggage, emergency evacuation and getting your body home if you die.

Each traveler's risk and potential loss varies, depending on how much of the trip is prepaid, the kind of air ticket purchased, your state of health, the value of your luggage, where you're traveling, what medical coverage you already have and the financial health of the tour company or airline. For some, insurance is a good deal; for others, it's not.

What are the different types of Travel Insurance?

1. Interruption insurance and trip cancellations. It covers financial penalties or losses you encounter when you cancel a prepaid tour of flight for an acceptable reason. These might include you and your family members who can't travel because of sickness.

It might also include you business partner or airline that goes out of business or can't perform as promised. It is also possible to cancel if you have a family member who is sick. For a good reason such as a car accident or inclement weather, you miss a flight or need an emergency flight. In other words, if you or your travel partner breaks a leg a few days before your trip, you can both bail out and neither of you will lose a penny.

And if, a day into your tour, you have an accident, both of you will be flown home and you'll be reimbursed for the emergency one-way return flight which usually costs far more than your economy round-trip fare and whatever portion of the tour you have not used.

2. Medical insurance cover medical and dental emergencies. Check your health plan before getting a medical insurance because you may be already covered by it. Search for benefits and deductibles and the procedures for reimbursement of the emergency expenses.

3. Baggage insurance is included in the most comprehensive policies, but is rare to buy separately. This actually the insurance for your items such as jewelry, eyewear, electronics and photographic equipments. If the airline checked your baggage, it is already covered by the airlines. Homeowners' insurance is cheaper and you'll have coverage even after your trip.

4. Flight insurance is crash coverage, is a statistical rip-off that heirs love. It's basically a life insurance policy that covers you when you're on the airplane. Since plane crashes are so rare, there's little sense in spending money on this insurance.

5. Comprehensive travel insurance it covers all, airfare, car rentals, tour etc. it depends on you age. This can be a better deal for travelers with less of the trip prepaid because coverage is the same regardless of the premium you pay. Some comprehensive policies also cover collision damage, which allows you to avoid paying your car-rental company for collision damage waiver CDW insurance.

Never buy travel insurance from companies with no names. Not all insurance companies are licensed. You do not have a case if you claim problems with a licensed company with no license. Most of the licensed insurance companies are open 24 hours.

Getting travel insurance is as good as securing your family's health. It is making sure that everyone is properly protected, including the loss of your passport, money or luggage, travel delays, missed departures and incurring legal expenses. It is like you are sure you are having a safe trip.