Do we really need car rental insurance?
Well I also used to ask my self the same question but that changed one cold midnight at a rental counter, when I was standing and fighting off fatigue. After listening to the pitch for collision damage waiver (CDW), I paid for what turned out to be double coverage. I didn't know at the time that some rental firms intentionally wait until the last minute to hard-sell insurance options — or that some rental agents get incentives to push CDW at the counter.
But I realized my downfall was not that I was not aware but was the fact that there are many people out there to misguide so that they can benefit in a situation like this. These are the various insurance available.
- CDW (collision damage waiver) and LDW (loss damage waiver). This relieves you of financial responsibility for a rental vehicle damaged by an accident, vandalism or theft. It usually costs between $9 and $20 per day.
- SLI (supplemental liability insurance). This provides excess liability coverage up to $1 million. It usually costs between $7 and $9 per day.
- PAI (personal accident insurance). This covers you and all passengers in your vehicle for any medical expenses. It's not necessary for most renters already covered by personal health policies or travel policies. It usually costs between $3 and $5 per day.
- PEC (personal effects coverage). This provides coverage for theft of or damage to personal items inside the rental car. Again, it replicates coverage already provided to many renters through their own insurance policies. It usually costs between $2 and $5 per day.
Check your personal auto policy – you may already be covered. Check your coverage by your charge card company - it is usually included. Find out if such insurance is included under your corporate travel policy.
If you've determined that your existing coverage is not fully adequate, then you can buy the insurance wisely – an not because some clerk wants a better commission.
