Properly insuring a rental car can be confusing, frustrating, and downright daunting. Unfortunately, many consumers do not even think about car rental insurance until they get to the counter, which can result in costly mistakes.

Before renting a car, 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.

Using Rental Car Insurance

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 recreation and not for business.

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.

Check to see whether your insurance company pays for administrative fees, loss of use, or towing charges. Some companies may provide an insurance rider to cover some of these costs, which would make it less expensive than purchasing coverage through the rental car company. Keep in mind, however, that in most states diminished value is not covered by insurers.

It’s always a good idea to review your policy before renting a vehicle, and, if necessary, contact your agent for clarification.

Courtesy of Insurance Information Institute