Planning a Family Vacation? Steps to take before Renting A Car

by Anna Glendenning | More from this Blogger

19 Mar 2007 10:34 AM

Spring break is here and summer is just around the corner! Many families will head out the door for a well planned vacation which may include Renting a Car. Many vacationers may not even think about the insurance for a car rental until they're at the rental counter, and this can lead to an expensive mistake.

Insurance needs should never be a quick decision and one of the most common places consumers make poor choices are at the end of a long line at the rental car counter. Many consumers panic when asked, "Would you like to buy or decline car rental insurance?"

Given the choice many rental car customers, choose to buy all the coverage's offered while others decline the insurance completely assuming they're covered under their personal auto insurance policy. These choices may lead to wasted money spent on unneeded insurance coverage or driving around in a rental car dangerously underinsured.

How can a family know what the best choice may be for them? It starts with planning ahead of time and understanding the type of insurance coverage we have before we get to the rental car counter. I recommend before starting the vacation make two phone calls - the first to the insurance agent or insurance company and the second to the credit card company used to pay for the rental car.

Talk to the Insurance Agent or Insurance Company:

• Understand how much coverage there is on the car or cars you have currently insured.
• Pay attention to the Collision and Comprehensive and deductibles and understand the same deductibles will apply when a car is rented.
• Remember that personal auto insurance will only extend to a rental car if it's being used for pleasure. Personal auto insurance generally doesn't cover rental cars used for business purposes.
• If you have dropped either comprehensive or collision on all of your insured cars under your personal auto policy, then there will not be coverage for a rental car if it is damaged in an at fault collision or stolen.
• If there isn't any comprehensive or collision coverage under a personal insurance policy it's advised to purchase the collision damage waiver from car Rental Company.

Talk to the Credit Card Company:

• Many major credit card companies often include insurance benefits. However, the credit card company's insurance coverage may differ by the company or the bank issuing a credit card.
• Insurance coverage may vary according to the level of credit card used. For example there may be a huge difference in the "Gold" plan and the "Platinum" plans offered by the same credit card company.
• Ask the credit card company to explain exactly what kind of insurance may be included under the credit card, by calling the customer service number printed on the back of the card being used to rent the car.
• If you're depending on the credit card for rental car insurance, be sure to have the card company or issuing bank send the insurance coverage information in writing.
• Credit card insurance benefits are usually consider as secondary insurance after the personal auto insurance policy or the insurance offered to customers from the rental car company.
• When you have more than one credit card available to use, it might be a good idea to contact each of the credit card company's and decide which one offers the most rental car and travel assistance coverage.

After gathering all the information from your insurance and credit card company what choices will a rental car customer be ready to make at the counter regarding insurance?

Be sure to read the next Blog, before you find yourself standing at the counter and make a decision.

Photo credit for this blog entry: (standard restrictions for this photo)

Related Blogs:

• The Contents of An Auto Insurance Policy.
• No Car? Do You Still Need Auto Insurance?
• Your Credit Score and How It Relates To Insurance.

Glossary of Insurance Terms:

A | B | C | D | E | F | G | H | I | J-K | L | M | N | O | P | Q-R | S | T | U-V | W-Z

Families.com Blogs are for informational purposes only. Families.com assumes no responsibility for consumer choices. Consumers are reminded that it is their responsibility to research their choices properly and speak to a certified insurance professional prior to making any decision as important as an insurance purchase.

auto insurance, Collision Waiver, Rental Car Insurance