Posted: January 25, 2011

You’re about to start that vacation or business trip and it’s time for “the question” – do you want to pay for car rental insurance?  Here are factors you need to weigh in order to make the right decision.

You’re likely to be offered two types of coverage.  A Collision Damage Waiver covers you, while a Loss Damage Waiver protects the rental company.  The most important thing for you to do is talk to your agent in advance of renting, to find out what your policy covers.  Many personal policies already provide liability coverage in the event a driver injures someone; some include comprehensive and collision coverage specifically for car rentals.  If yours does so, there’s no need for duplicated coverage.  In some cases, credit card companies also provide coverage when the transaction is made with their card.  The thing to check on is the terms for “loss of use.”  If a rental company loses access to its vehicle for awhile due to your mishap, in many states, they can charge you for dollars they might have otherwise been able to earn.  If you’re in a state where this charge is permitted, consider paying for the Loss Damage Waiver.