Car Rental Insurance

• some credit cards
• some travel insurance
• your own auto insurance for your own car may also cover car rental insurance
  

Four types of optional insurance offered by most major car rental firms include:

CDW (collision damage waiver) and LDW (loss damage waiver). This relieves you of financial responsibility for a rental vehicle damaged by an accident, vandalism or theft. It usually costs between $9 and $20 per day. Note: Although the sale of CDW was formerly prohibited in New York state, recent legislative changes now allow it.

SLI (supplemental liability insurance). This provides excess liability coverage up to $1 million. It usually costs between $7 and $9 per day.

PAI (personal accident insurance). This covers you and all passengers in your vehicle for any medical expenses. It's not necessary for most renters already covered by personal health policies or travel policies. It usually costs between $3 and $5 per day.

PEC (personal effects coverage). This provides coverage for theft of or damage to personal items inside the rental car. Again, it replicates coverage already provided to many renters through their own insurance policies. It usually costs between $2 and $5 per day.

Car rental companies often make these options even more confusing by combining two or more into insurance packages. You could evaluate each product separately.

Steps to take regarding car rental insurance

1. First determine if you have a need for the service
2. Verify if you are not already covered.
   
3. Finally, comparison-shop the costs of each car rental company. Note that in some travel hot-spots, the cost of taxes, fees, surcharges and optional insurance can easily exceed the daily base rate of the car rental itself.