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Rental-Car Insurance Oftentimes is Overkill
Frequent business traveler James Smith says he has saved "tons of money" during the past 30 years by declining car-rental companies' optional insurance coverage. But, he acknowledges, it could have come in handy at times.
Smith, an economist in Asheville, N.C., has paid $1,100 for damages to three rental cars in the past five years, including when he backed a car into a rock in Ireland
Smith was unaware that his personal auto-insurance policy would have covered most of the damages in Ireland, so he didn't make a claim. In the other two incidents, he had to pay deductibles. Like Smith, many travelers are unsure about their coverage when they approach a car-rental counter. The National Association of Insurance Commissioners surveyed 632 consumers in September, and 42 percent were "either thoroughly confused or had only a rough idea about insurance."
The association of top state insurance officials says 34 percent of consumers surveyed by telephone bought a rental-car company's insurance just to make sure they were covered.
"When renting a car, many consumers purchase unnecessary insurance and end up wasting money," says Walter Bell, Alabama insurance commissioner and NAIC president.
Renters should check first whether their personal auto-insurance policy provides sufficient cover before buying additional insurance, NAIC says
One note of warning: Personal auto policies that provide coverage for renters often include conditions.
Source: http://www.azcentral.com/
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