Frost on the windshield this morning! OK, now we’re all planning to go someplace warm again this winter. When you get to the car rental counter, you’ll need to make the decision to buy their (1) vehicle damage waiver; (2) liability coverage, etc. Here’s how I approach this:
If I’m not traveling in the US, Canada, US Territories or Puerto Rico, I know I’ll need to buy what they put in front of me.
If I AM traveling in the US, Canada, US Territories and Puerto Rico I know the Liability Coverage and Personal Injury Protection (PIP) from my auto policy will cover me and my resident relatives. I don’t seek this coverage from the car rental company.
Since at least one of my insured vehicles has physical damage coverage — collision and comprehensive (or “other-than-collision”) — I can choose to use that coverage for the rented vehicle. But I don’t. I always purchase the vehicle damage waiver and make sure everyone who will be driving the vehicle is listed as a driver. Having an undocumented driver driving the vehicle is the most common waiver violation!
What’s my reasoning here? Let’s say the vehicle check-in team finds a dent in the car when I turn it in. It could be tough to prove that I didn’t do it. I don’t want this to be counted as a claim on my auto policy and perhaps cost me a claim free discount. I purchase the Vehicle Damage Waiver and I don’t worry about vehicle damage. However, depending on the rental company’s damage waiver contract (they aren’t all the same), it’s possible I could still get charged for things that my auto policy might or might not pick up, especially if I violate the terms of the waiver or damage the vehicle badly enough.
Some final points:
- Make sure you have a paper copy of your auto insurance with you when you travel.
- Be careful about relying on your credit card company’s auto coverage. Read their contract before you make that decision!
- As always — don’t make assumptions – call your auto insurance agent when planning your trip, read through the Damage Waiver contract of your chosen auto rental company, and make these decisions together!
