Contact:
Karl Newman, President
Darrin Sanger, Communications Director
NW Insurance Council    
Phone: (206) 624-3330
Fax: (206) 624-1975
karl.newman@nwinsurance.org
darrin.sanger@nwinsurance.org

Don't get blindsided on vacation; understand facts about insurance

SEATTLE - Planning an end of summer vacation can be a time consuming and tedious process. Reserving a rental car is one of the many tasks to handle before your trip.

"Many people are not aware that your auto insurance coverage extends to rental cars," said Karl Newman, president of the NW Insurance Council. "A quick call to your insurance company or agent can save you time and money at the car rental counter."

As part of your vacation planning, NW Insurance Council and the Insurance Information Institute (III) offer the following tips to help you enjoy your vacation knowing you and your family are covered:

Before the trip

• Call your insurance company - Find out how much coverage you currently have on your own car for liability, comprehensive and collision. In most cases, whatever coverage and deductibles you have on your own car will apply to a rental car. If you've dropped either comprehensive or collision on your own car as a way to reduce costs, you will not be covered if your rental car is stolen or damaged in a collision.
• If you intend to use your credit card for insurance protection, ask the card company or bank to send you their coverage information in writing. Insurance benefits offered by credit card companies differ by both the company and the bank that issues the card, as well as by the level of credit being used.

At the rental car counter

• Because insurance is state regulated, the cost and coverage for rental car insurance purchased at the rental counter will vary from state to state. Consumers, however, can typically purchase the following coverage through the rental car company:
  • Collision Damage Waiver -- Sometimes, referred to as a Loss Damage Waiver, it is not technically an insurance product. It does, however waive a renter's financial responsibility if the rental car is damaged or stolen. If you have comprehensive and collision coverage on your owned vehicle, you may not need this additional protection.
  • Liability insurance -- This provides coverage if you are at-fault in an accident. Rental companies are required by law to provide the state required amount of liability insurance. Generally, these amounts are low and do not provide much protection. If you have adequate liability coverage on your own car, you may consider forgoing this additional coverage. If not, this supplemental insurance will cost between $7 and $14 a day.
  • Personal accident insurance -- This offers coverage to you and your passengers for medical and ambulance bills for injuries caused in a car crash. If you have adequate health insurance or have personal injury protection under your own auto policy, you may not need this additional insurance. It generally costs about $3 a day.
  • Personal effects coverage -- This coverage provides insurance for theft of items in your car. If you have homeowners or renters insurance, you are generally covered for theft of your belongings away from home, minus the deductible.

For more information, contact the NW Insurance Council at (800) 664-4942 or visit the council's website at www.NW Insurance Councilonline.org.

The NW Insurance Council is a nonprofit, consumer-education organization funded by member insurance companies.

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