This provides coverage to you and your passengers for medical/ambulance bills. This type of insurance, usually costs about $1 to $5 per day, but may be unnecessary if you are covered by health insurance or have adequate medical coverage under your auto policy. PAI protects you in the event of accidental death or bodily injury for the duration of the rental. This coverage provides medical, ambulance and death benefits for the renter and passengers of the rental car in the event of an accident.
Supplemental Liability Insurance (SLI) is another type of coverage that you will encounter while renting a car. This provides liability protection for up to $1 million. Rental companies are required by law to provide the state required amount of liability insurance. For a fee of approximately $10 per day, the car rental company will supplement the liability insurance that the company must, by New York law, provide. If you are a renter who has minimal assets, the minimum coverage that car rental companies provides may be adequate to protect you from lawsuits by victims of accidents involving the rental car. If you have your own automobile insurance policy with coverage above the minimum amounts, your policy should cover you when you operate a rental vehicle, so SLI is likely not needed. However, since SLI usually provides $1 million of liability protection, considerably more coverage than most consumers have under their own automobile insurance policies, if there is a reason that you want more coverage for the rental than you ordinarily carry for your own car or you do not have an automobile insurance policy, buying the SLI may make sense.
If you have been tagged this year to plan the upcoming family vacation, worrying about rental car coverage may be at the bottom of planning needs. However, a small mistake by not choosing the right kind of car insurance can end up costing thousands of dollars and ruin a vacation. To help you choose the right kind of car rental insurance, I will address the main type in this article.
Collision Insurance: The collision damage waiver (CDW) covers the cost of damages to the rental car if you are involved in an accident. This is also known as the Loss damage waiver (LDW). However, it is not insurance — it is simply a provision of your rental agreement that addresses your liability for damages to the car.
Auto Insurance Policy: If you have your own auto insurance policy, call your insurance agent before you rent a car. You don’t want to pay extra money for coverage you already have. Damages to the rental car are only covered under your policy’s comprehensive and collision coverage. Make sure your auto policy includes this type of coverage. Look at it this way, if you normally drive a 10 year old station wagon but you are renting a brand new Mustang for that snazzy office party, you want to make sure that your policy will cover the complete cost of replacing the newer car. Credit Card Coverage: When you are the primary renter, simply use your eligible card to reserve and pay for your auto rental. Decline the collision damage waiver (CDW) or similar option when you are reserving and picking up your car from the car rental company. The Car Rental Loss and Damage Insurance Plan usually provides coverage against theft of or damage to most rental vehicles. Coverage usually applies for the first 30 days. Speak with a customer service agent at your credit card company and verify all the details before you pick up the rental car.
You May Need Purchase the CDW Coverage: If your credit card or auto insurance covers you, you can decline the rental car company’s coverage. If you are not covered through any of the above, consider purchasing the collision damage waiver. It is wise to pay about $10 day than $15000 to replace a rental car.
If you choose to take the car rental company’s insurance, be prepared to have enough credit card coverage to cover the deductible as well as the rental fees. Deductible amounts typically range from $0 to $1000.Now that you know the benefit of collision insurance, you can make an educated decision next time you rent a car in New York.