Ed Perkins from SmarterTravel.com just penned one of the most useful articles about car rental insurance I’ve read in a while. It’s titled “9 Nasty Truths About Car Rental Insurance.” If you’ve ever wondered if you should buy the car rental company’s overpriced CDW (collision damage waiver) or just use your own insurance (or a credit card’s), I recommend spending the 10 minutes to read this post. If you don’t have time, then at least read the last two paragraphs, which are:
“The take-away from all this: No alternative source of collision damage coverage — your auto insurance, your credit card or a third-party — completely isolates you from risk. Lots of travelers successfully rely on lower-cost alternatives to a CDW without encountering any problems, sure. Occasionally, however, your own insurance, credit card or third-party policy may not cover an unusual charge a rental company might impose.
If you’re unwilling to accept any risk at all, you might want to buy that overpriced CDW. For most travelers and circumstances, credit card or third-party coverage is sufficient, and primary coverage is a lot better than secondary.”
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Editorial Note: The editorial content on this page is not provided by any bank, credit card issuer, airlines or hotel chain, and has not been reviewed, approved or otherwise endorsed by any of these entities.