RENTAL CAR INSURANCE

Buying a collision damage waiver brings questions to mind for many drivers at the rental car counter. The waiver covers the cost of damages to the rental car if you are involved in an accident.

The Western Insurance Information Service suggests some guidelines to follow and questions to ask before shelling out extra cash for the waiver.

First, review your auto insurance policy or call us before you rent the car. You don't want to pay extra money for coverage you already have. Most policies provide liability insurance if you injure someone in an accident. But damages to your rental car are only covered under your policy's comprehensive and collision coverage. Make sure your policy includes this type of coverage.

Second, Check your credit cards. In some cases your credit card will pay for damages to a rental car in the event. To be eligible, you may have to decline the collision damage waiver as well as charge the full amount of the rental car on your card. Make sure you understand all the limitations and exclusions your credit card may issue.

If you are absolutely sure your auto insurance or credit card will cover any damages, you can safely decline the coverage. For others renting a car buying the collision damage waiver could be the answer.

If you aren't covered under your own insurance or credit card you should consider purchasing the waiver. It's a better option to pay the $8-10 a day than thousands to replace the rental car.

The collision damage waiver also covers "loss of use," what the rental company charges you for the money and time it lost since the vehicle could not be rented while being replaced or repaired. Most states do not cover loss of use under an auto insurance policy.

If you are involved in an auto accident and the rental car company wants payment up front, you'll have to wait to be reimbursed. Just the aggravation can be a reason to purchase the collision damage waiver.