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Avoid Renting Trouble without the Proper Auto Coverage

You are driving for business or pleasure and you are involved in an accident with your rental car. Are you covered?
While properly insuring a rental car can seem confusing, frustrating and even daunting at times, it is the way to go to avoid being driven to financial problems.
As it turns out, many consumers do not even consider car rental insurance until they approach the counter. That simply leads to the opportunity of either wasting money by acquiring unneeded coverage or having major gaps in coverage.
Prior to renting a car, the Insurance Information Institute (I.I.I.) recommends that drivers take care of several steps in order to acquire the necessary insurance so that their trip goes smoothly.
First, find out how much coverage you presently have on your own vehicle. In many cases, whatever coverage and deductibles you have on your own vehicle would apply when you rent a car, providing you are using the car for recreation and not for business.
In the event you have dropped either comprehensive or collision on your own car as a means to lessen expenses, you will not be covered if your rental vehicle is stolen or damaged in an accident.
It is important to determine whether your insurer pays for administrative fees, loss of use or towing charges. Some insurers may offer an insurance rider to cover a portion of these costs, thereby making it less expensive than acquiring coverage through the rental car company. Remember, however, that in the majority of states diminished value is not covered by insurance companies.
When at the rental car counter, note that since insurance is state regulated, the cost and coverage will differ from state to state.
In many cases, consumers can choose from a number of coverages:
Loss Damage Waiver (LDW) is not technically an insurance product, but they do relieve or "waive' renters of financial responsibility should their rental be stolen or damaged. In many cases, waivers also provide coverage for "loss of use,' in case the rental car company charges for the renter for the time a damaged car isn't permitted to be used since it is being fixed. It may also cover towing and administrative fees.
It is important for drivers to remember that waivers can become void should the accident be the result of speeding, driving on unpaved roads or driving while under the influence of alcohol. For those drivers who already have comprehensive and collision coverage on their own car, they should check with their personal auto insurance company to determine if they are duplicating coverage or not.
As the law states, rental insurers' have to provide the state required figure of liability insurance. Typically these amounts are minimal and do not provide much coverage. For those drivers who have adequate amounts of liability protection on their own car, they may want to look into forgoing added liability protection; supplemental insurance usually costs from $7 to $14 a day.
Another option is an umbrella policy, which may be more cost-effective. These types of policies are usually sold in increments of a million dollars, cost as little as $200 to $300 annually for a million dollars worth of coverage and another $50 to $100 for each added million.
For those individuals who do not own their own vehicle and rent cars frequently, they can also look at acquiring a non-owner liability policy.
This will not only provide liability protection when one rents a vehicle, but also when they use someone else's car.
Another option is personal accident insurance which provides coverage for the driver and their passengers for medical and ambulance bills for injuries caused in a car crash.
There is also personal effects coverage that provides insurance protection for the theft of items in the vehicle. For those drivers who have a homeowners' or renter's insurance policy that includes off-premises theft coverage, you are typically covered for theft of your belongings outside the home, minus the deductible. Should you purchase this coverage through the rental car company, it typically costs between $1 and $4 a day.
For those individuals who frequently travel with costly items like jewelry, cameras, musical or sports equipment, it can be more cost-effective to acquire a personal articles floater through your homeowners' or renter's insurance policy.
By having such a floater, your valuable items are protected at home along with when you are traveling anywhere in the world, plus the coverage is broader.

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