Find out whether your insurance covers auto rental.

It may surprise you to learn that many drivers don’t need to purchase additional auto rental insurance. Your existing insurance may already cover an auto rental.

· In most cases, the insurance on a vehicle you own will apply to a vehicle you rent for personal use. However, you may need to supplement the policy if you own an older car and are planning to rent a newer vehicle.

· If you pay for an auto rental with your credit card, it may be covered under the credit card company’s insurance policy. The amount of coverage can vary significantly according to the company that issued the credit card, so it’s best to double-check your policy if you’re relying on this coverage to insure an auto rental.

· If you’re traveling on business, your employer’s coverage should insure your auto rental.

While you may not need auto rental insurance in many cases, sometimes it’s not a bad idea to pay for extra coverage. If you’re traveling in another country or driving under unfamiliar conditions, you many want to purchase additional insurance for your own peace of mind. There are four different types of auto rental insurance offered by most major companies.

· CDW (collision damage waiver) and LDW (loss damage waiver) will pay for a rental vehicle damaged by theft, accident, or vandalism.

· PAI (personal accident insurance) provides coverage for any medical expenses vehicle occupants may incur during an accident. Since most people already have health insurance, PAI coverage is usually not necessary.

· PEC (personal effects coverage) provides coverage for personal items inside a rental car. It’s not necessary if you have a personal homeowners or rental insurance policy that already covers your belongings.

· SLI (supplemental liability insurance) offers additional liability coverage up to $1 million.

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