Market Overview

GEICO Says: Know What's Covered in a Rental Car Policy


The call of the open road is never as loud as it is in the summer.

Many will opt to take their weekend getaway or summer vacation in a rental
. Picking your car may not be the toughest decision you'll
have to make at the rental counter. You'll be faced with the obligatory
choice of whether to buy or pass on rental vehicle insurance coverage.

Before you make that choice, GEICO
recommends that you first reach out to your auto insurer and then
contact your credit card company. Your insurance company can tell you
what types of rental vehicle coverage are already included on your
personal vehicle policy. Also, many credit card companies offer some
form of rental car coverage.

If you decide to err on the side of caution and purchase additional
coverage at the rental counter, know what you are buying.

Liability coverage is a basic component of most car insurance
policies. You may be able to pass on this if you have adequate liability
coverage on your own vehicle. Your insurance company will be able to
tell you for sure.

Personal accident insurance, which covers your medical bills in
the event of a crash in a rental car, is another coverage that may not
be necessary to purchase if you have personal injury protection or
medical payments coverage on your auto policy and reliable health
insurance. Your insurance carriers can tell you if this duplicates
coverage that you already have.

Collision Damage Waiver (CDW)/Loss Damage Waiver is not
insurance, per se, but a waiver that transfers financial responsibility
from you to the rental car company in case of damage or theft.

Personal Effects Coverage covers your laptop, cell phone and
other items if they are stolen from a rental car. But if you have a
homeowners, renters or condo policy, your personal items will generally
be covered even if they are stolen from a rental car. Again, your
insurance company can help you decide if this coverage is necessary.

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