Ensure you’re insured before you
pick up that rental carYou’ve just arrived at a strange airport -- tired,
bedraggled, maybe even jet-lagged. You’ve survived the hassle at the baggage
carousel. Now, you just want to pick up your rental car, head for the hotel and jump into
the shower.
But there’s one more task at hand -- the rental car contract and its array of
insurance options, each crying out for your initials and representing an additional
charge. Approach this document with a clear head and a good command of the facts.
Is this insurance necessary?
You may be wondering if you really need insurance. After all, your driving record is
perfect. Plus, you’ve rented cars before and turned them back in with nary a dent or
a ding.
Here’s what Tom and Ray Magliozzi, who dispense their incomparable brand of
automotive wisdom on National Public Radio’s witty Car TalkSM call-in
show, have to say:
TOM: An accident could ruin your vacation. And there are two things that make
accidents more likely in rental cars. One is that you're unfamiliar with the car. So
you're more likely to be feeling around for the windshield wiper switch or trying to
figure out how to get the seat-warmers off "high" in Florida while you're
negotiating unfamiliar roads.
RAY: And to complicate matters, you're also on, what? Vacation! So you're bound to be
looking around, taking in the scenery, admiring the local K-Marts and Gaps. And when you
combine that with the fact that the car is new to you and you don't know the roads, you
could easily drive into a roadside fruit stand. So be careful.
Clearly, then, you need to research your insurance coverage before you leave home.
Pay with a card that offers insurance coverage
If you have your own auto, ask your insurance agent if your policy covers rental cars,
and if it has any geographical limitations.
And don’t forget that, if you use your charge or credit card to reserve the rental
car and pay the charges when you return it, you may get protection as a benefit. By
declining the car rental agency’s coverage, you could avoid adding $15 or more to the
rental fee.
But, policies can vary card-by-card and country-by-country. Some card issuers provide
car rental insurance only if you pay with one of their premium cards. However, a wide
array of American Express consumer charge cards include basic car rental loss and damage insurance. And for Platinum Card® members there
are additional accidental death and dismemberment benefits, as well as coverage for loss
of, or damage to, the personal property of Card members or passengers.
Internationally, rules and regulations vary. Some countries, such as Australia and New
Zealand, mandate that insurance be included in the rental fee. Or, coverage may not extend
to countries where costs are unusually high. Your best bet is to check out the situation
in the country where you’ll be driving -- by calling the card issuer before you leave
home.
Finally, find out if particular cars are excluded from coverage under your card’s
insurance benefit. Typically, coverage doesn’t include expensive or antique cars, or
larger vehicles such as trucks, full sized vans or sport utility vehicles.
July 15, 1999 |