The number of Americans traveling for Thanksgiving this year is up 11.4 percent from last year.  About 42.2 million people will be traveling at least 50 miles away from home, according to the American Automobile Association.  If you will be renting a car for the holiday, it’s important to understand car rental insurance before you get to the counter.  

Before renting a car, contact us to see what coverage you already have through your auto and/or homeowners/renters policy.  Also contact the credit card company you will be using to pay for the rental car.  These companies may offer some type of insurance benefits, but it varies by company.

Rental car insurance offers four important coverages:

1. Loss Damage Waiver (LDW) is also referred to as collision damage waiver, and is not technically an insurance product—it relieves or “waives” renters of financial responsibility if a rental car is damaged or stolen. In most cases, waivers also provide coverage for “loss of use,” in the event the rental car company charges the renter for the time a damaged car cannot be used because it is being repaired. It may also cover towing and administrative fees. 
2. Liability Protection provides financial protection from lawsuits in the event you are sued following an accident involving a rental car. While by law, rental companies must provide the state required amount of liability insurance, generally, these amounts are low and do not provide much protection.  
3. Personal Accident Insurance will cover you and your passengers for medical and ambulance bills incurred by injuries in a car crash. If you have adequate health insurance or are covered by personal injury protection under your own car insurance, you may not need this additional insurance.
4. Personal Effects Coverage provides insurance protection for the theft of items in your car. If you have a homeowners or renters insurance policy that includes off-premises theft coverage, you are generally covered for theft of your belongings away from home, minus the deductible.

Information from Insurance Information Institute.