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Understanding Rental Car Insurance 
Understanding Rental Car Insurance

Know what kinds of insurance you really need before you ever walk up to the rental car counter. This video breaks down the various types of coverage so you make the safest and wisest choice. 

Collision Damage Waiver (CDW) or Loss Damage Waiver (LDW) 
If damage occurs to a rental car, the renter may be liable for the first charges for damage (the deductible) up to the total car price. By purchasing CDW, the renter is released from any loss or damage to a vehicle up to the its full value. However, if the renter violates the rental agreement, the waiver is void. Your personal auto insurance may coverage the damage to rental cars and CDW or LDW coverage may not be necessary. Regulations for selling CDW/LDW varies from state to state. 

CDW/LDW is usually an option, however, a some companies make it a requirement. Check your own auto insurance policy to determine if you need CDW/LDW before you arrive at the rental counter and consider how much this may increase the daily rental cost (costs range from $8 - $12 per day).

Personal Accident Insurance (PAI)
Personal Accident Insurance provides accidental death and medical coverage to the renter and passengers when they are riding with you. See If your personal car insurance policy covers car rentals. If it does, you may not need PAI. This insurance is usually optional.

Personal Effects Coverage (PEC)
This covers protection against loss or theft of personal belongings in the rental car. Once again, check your own auto insurance policy to see whether your coverage includes rental cars.

Additional Liability Insurance (ALI)
ALI is an option that protects the renter against claims made by third parties for bodily injury/death and property damage caused operation of the rental vehicle. Check your own auto insurance policy to determine if additional coverage is already provided. 
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Rental Car Insurance