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Damage Waiver Protection

You can save significantly by declining car rental companies' optional insurance coverage. This differs from the car rental rider found in your car insurance policy. As long as there's no accidents!

But many travelers are unsure about their coverage when the go to rent a car. Most people bought a rental car company's insurance just to make sure they were covered. But if you are already covered, that purchase unnecessary insurance and end up wasting money," says Walter Bell, Alabama insurance commissioner and NAIC president.

When you rent a car, check if your car insurance policy or credit card you use covers damage to the rental. If so, you don't need to buy additional insurance.

Credit cards include some collision and theft protection, but the coverage is secondary to your personal car insurance or the damage waiver protection offered by the car rental company.

Car rental coverage offered by credit card companies have terms and conditions in order for them to reimburse you for damage. You usually have to notify the credit card company within a certain number of day of the incident.

Your personal car insurance plans may not that provide coverage for rentals during business trips and have certain $ limits. Your car insurance will also typically exclude rentals outside the US.

Damage waivers insurance is very profitable for car rental companies, offering many types of plans to choose from. Most offer damage waiver, supplemental liability, personal accident insurance, and personal effects insurance.

Buying damage waiver protection may not only cover damage to your rental car, deductibles, and your time in dealing with the rental company, your insurer and his credit card company. But rental coverage can be expensive.

If you don't have any other insurance, say you do not own a car, and you credit card does not cover rental car damage, consider the damage waiver protection. Any damage, even if you don't know about it, will be covered. If you want a peaceful trip without stressing over the rental, you can buy collision coverage for peace of mind.

Some credit cards, like the American Express Platinum card, offer special rates for damage waiver. If your car rental is damaged, the car rental company wants you to pay for the repairs up front, and then recover the money from the insurer or credit card company. You may owe a deductible, and the insurer may increase your rates.

But with damage waiver protection, if you get into an at fault accident (especially abroad), your insurance company many not be involved if you do not go over the limits. If you get ticketed for an at fault accident, your insurer may still raise your rates.

Summary: It's boring and confusing, but read your car insurance company and credit card terms and conditions, but it's better than being under insured in an accident. Some countries like Mexico will even take you to jail until the damage is paid for. So damage waiver protection may not be the rip off many claim.

Written by Craig J. Casey

Financial Writer helping people with their insurance problems on the net since 1998.

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