"Whether or not to buy rental car insurance or any other insurance product should not be a snap decision," said Jeanne M. Salvatore, senior vice president and consumer spokesperson for the I.I.I. "Faced suddenly with a number of choices, some renters either purchase all of the offered coverage or they decline the insurance without knowing if they are covered by other policies. This can result in the consumer either wasting money by purchasing unnecessary coverage or being dangerously underinsured."
A September 2007 survey by the National Association of Insurance Commissioners reported that 42 percent of respondents were either thoroughly confused or had only a rough idea about insurance coverage when renting a car.
Before renting a car, the I.I.I. suggests that you make two phone calls: one to your insurance agent or company representative and another to the credit card company you will be using to pay for the rental car.
Insurance Company
Find out how much coverage you currently have on your own car. In most cases, whatever coverage and deductibles you have on your own car would apply when you rent a car, providing you are using the car for pleasure and not for business. Remember, if you have dropped either comprehensive or collision on your own car as a way to reduce costs, you will not be covered if your rental car is stolen or damaged in an accident. In this case, you may want to purchase the collision damage waiver from the car rental company.