Dover – As holiday travel begins, Insurance Commissioner Matt Denn is offering tips to consumers to help them figure out whether they need to purchase the insurance offered when renting a car.

Many people purchase insurance at the car rental counter without knowing that their existing auto policies or credit card benefits may already cover their needs. A survey by the National Association of Insurance Commissioners (NAIC) of consumers shows confusion about whether to buy insurance when renting a car, according to new research.

“When renting a car, many consumers purchase unnecessary insurance and end up wasting money. Meanwhile, other drivers inadvertently underinsure their rental car, placing themselves at risk,” Commissioner Denn said. “As travel increases around the holiday season, we encourage consumers to investigate whether their existing auto insurance provides sufficient protection for car rental.”

The NAIC’s national survey of 632 consumers, conducted from Sept. 19-30, 2007, found:

• Approximately 42 percent of respondents said they were either thoroughly confused or had only a rough idea about insurance coverage when renting a car.
• 34 percent of respondents said they purchased the rental company’s insurance just to make sure they were covered.
• 24 percent of consumers were not sure whether their credit card provided insurance coverage when renting a car.

“Drivers should educate themselves before they reach the auto rental counter,” Commissioner Denn said. “Carefully review your auto insurance policy and check with your credit card issuer about auto insurance benefits. Protect yourself and save money by taking a few precautions and asking the right questions.”

Commissioner Denn offered the following tips for consumer to consider prior to renting a car:

• Ask your insurance agent or insurance company if there are any situations in which your existing auto policy would not cover a rental car.
• If your current auto policy doesn’t offer coverage for a rental car, see if an insurance rider can be added for a small fee.
• Ask your credit card company if it provides rental car coverage and, if so, what the limits are. Many credit cards include some level of collision and theft protection. In most cases, these benefits are secondary to your personal auto insurance or the car rental company’s insurance, meaning the credit card company will only pay claims after other insurance coverage has been exhausted.
• If you lack personal auto insurance and your credit card does not provide benefits, then it might be wise to purchase the liability insurance and collision damage waiver at the car rental counter.
• Keep in mind that if it is a longer-term rental (e.g., a week, a month or more), there might be limitations on the coverage your existing auto insurance policy provides. Check with your insurance company or agent for details.
• When traveling on business, a personal auto policy will generally not apply, so check with your employer for guidance.

These tips are available by going to the Insurance Commissioner’s website at www.delawareinsurance.gov and clicking on “Car Rental Insurance.”

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