Car Insurance

Many auto rental companies include basic automobile liability and standard comprehensive insurance protection, including theft insurance, as a part of their service without added charge.

* Personal Accident Insurance (PAI) is optional at an additional charge. This provides both life and medical insurance for the driver and passengers. But check your personal car insurance policy-you might already be covered.
* Personal Effects Coverage (PEC) is also optional at an additional charge. It covers loss of, or damage to, personal property, such as luggage and cameras, in the car, with some limitations and exceptions. You should ask what is covered and what the reimbursement limits are.
* Collision Damage Waiver (CDW)-For a daily charge, the rental firm may offer you a CDW. CDW is not insurance. However, if you take it, the company waives the right to collect the deductible on collision insurance from you. Again, check your personal car insurance policy to see if it covers damage to rental vehicles. The CDW is optional, and it is illegal for a company to require you to purchase it.
* Loss Damage Waiver (LDW)-Provides coverage against theft and natural disasters, such as floods and lightning. Each company has its own limitations. You should ask what is covered and to what extent.

It is a good idea to examine, and be sure you understand, the insurance coverage and any waivers offered by the renting company. This is especially important when advertised rental rates are considerably lower than usual.

Be sure you give the vehicle a thorough examination for unusual dents and scratches before you take it out. Any damage should be noted on the contract before you leave the lot, even if this means going back into the rental office to make sure the damage is acknowledged in writing. Also, make sure that the spare tire and tools are in the trunk.

Do: Read and understand everything printed on the contract. Check the back of the contract-this is usually where the conditions and limitations are stated.

Don’t: Rent from a firm that stalls or refuses to provide insurance information, or rents vehicles with improper insurance coverage.

Do: Review your own personal auto coverage and major credit card member benefits.

Don’t: Rent from a company that refuses to provide specific information on what its waivers cover, and what exceptions apply.