How I Really Overpaid Rental Car Insurance in Hawaii

June 28, 2006 | By: | Comments (0) | Posted in: Auto

We were in Maui, renting the King of all rental cars: The Chrysler Seabring! I reserved the car through my favorite travel site three months prior, and felt satisfied that I actually got a great deal. At the time that I reserved the car, I selected the ‘add-on’ insurance protection without hesitation. From an online shopping perspective, this was my impulsive “Add gift wrapping?” behavior of which I’ve recently become much more liberal. Without another thought, I printed my confirmation number and called it a day.

Meanwhile, back at the rental car agency counter, I was asked if I wanted the standard auto insurance package. With an online shopping hubris, I held a printed confirmation and claimed that I already had it; blocking the rental company from further depleting my then “hard cash” travel budget. I was annoyed (mostly at myself) to learn that the insurance that I previously purchased was nothing more than a general form of Travel Insurance with Rental Car “Loss” protection. Failing to read the 25-page ‘Certificate of Insurance,’ which only provided $72.00 of insurance that didn’t meet my immediate vacation needs, I was forced to purchase the rental company’s house insurance package for both myself and my wife.

To add the proverbial insult to injury, after I returned from Hawaii, I read the March InsWeb Newsletter Article titled “Do You Really Need Rental Car Insurance?” The article simply explained how I failed as an insurance consumer to understand my primary auto insurance policy, and how I need to pick up the phone sometimes and ask my insurance carrier about what I’m already covered for, so I can save my money for an overpriced beverage at an overpriced hotel in Hawaii!

Although it was after the fact for me, the article taught me about the importance of communicating with your carrier or agent before you purchased rental car insurance. Many auto insurance policies already provide various types of protection for rental cars. The article advised consumers to check with their agent or policy before purchasing unnecessary rental coverage.

The article warns readers about how various rental car agencies can overwhelm their customers with different types of auto insurance coverage types that will add money to the base rental rate. Again, you may already be covered for this under your primary auto insurance policy.

The article explained why everyone should understand CDW (Collision Damage Waiver) protection which can cost an extra $8-11 per day. CDW covers both the cost of damages to the rental car if you are involved in an accident and the “loss of use” that the rental company will charge you. “Loss of use” means the time and money the rental car company lost since the vehicle could not be rented. While the damage to the vehicle itself may be covered by your personal auto insurance policy, the “loss of use” very likely will not be.

The article went into detail about rental car insurance and credit cards. This is a subject of much misunderstanding and travel myths.

The article touches on renting cars in foreign countries and the implications of your personal insurance coverage, which may not extend to a rental car.

 

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