Thursday, October 30, 2003
More Bang for Your Buck: Car Rental Insurance
It's a decision dilemma for anyone planning to rent a car. You go to the counter to get your vehicle and you're asked: Do you want rental insurance? Find out if it's a good idea in tonight's More Bang For Your Buck.
(WSVN) -- "I want to return my rental car."
Now, this is an example of people who need renter's insurance.
But depending on your policy, the extra protection is not always essential.
"Ihad no concerns what so ever."
Cindy Lieber learned the hard way on a business trip to California.
She declined renter's insurance because she thought her credit card would cover everything.
SHe says, "There was damage to the back bumper of the car."
That damage cost Cindy two hundred dollars.
An expensive lesson only because she didn't do her homework.
"Ibelieve most of the concerns that consumers have stem from their lack of knowledge."
Tony Sanchez from the Department of Insurance suggests - above all else - that consumers know their coverage.
"It's really important that you are familiar with that document because that will guide you as to the type of coverage that you need."
Typically, there are 3 main types of coverage offered at the rental counter: First, Collision Damage Waiver protects you if the vehicle is dented or stolen. However, most people are covered by their personal insurance.
Next, Personal Accident Insurance covers you in case of death or maiming. Keep in mind, this is also usually covered under your auto or health policy.
And then, there's the Personal Effects Coverage. It protects you if something is stolen from your car.
"Especially if you’re on vacation, you know you have valuables in your car, so that may not be a bad idea to purchase."
And in some circumstances, it may not be a bad idea to buy extended coverage... Especially if some renters want to protect their existing car insurance.
Cindy says, "Had I done my research it would have helped.You never know what’s going to happen."
As for coverage from your credit card, keep in mind, most companies only pay a percentage of the damage.
And most credit cards do not provide coverage for the more expensive rentals.
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