do I need car rental insurance?

our rental car during our last trip to France

What are your options for insuring a rental car when traveling? Here's my take on the choices you have.

(1) Rental agency's own CDW protection. This is something I do not recommend (unless you have no other options), as this product is overpriced and a real profit center for the car rental company. If you do opt-in to all of these coverages, the daily fees can come close to doubling the cost of your car rental. Because CDW's are so high profit, agents are incentivized to push this this product, and you may feel pressured by them to purchase this coverage.

(2) Credit card coverage. Know before you go, and call your credit card company if you're not sure what coverage is offered. Some cards offer no car rental insurance. Of those that do, most credit cards offer only secondary coverage while a few provide primary coverage. What's the difference?

Secondary coverage means your own car insurance policy will pay the bill (and likely jack up your premium because you made a claim). In other words, secondary coverage will only reimburse your deductible. However, if your card provides primary coverage, you've got a great product. Just be aware of the limits of the card's policies; typically it will not cover a rental greater than 30 days, etc.

If you do rely on your credit card's coverage, make sure you use one card for every facet of the rental. If you have rented a car as part of a tour package, you must use that card to purchase the entire tour.

(3) Add-on to "regular" travel insurance. It's always a good idea to purchase at least a zero-band insurance policy, especially if you're traveling outside the United States. Zero-band insurance means you're not purchasing any cancellation insurance — but you are getting medical coverage, medical evacuation, as well as protection for trip delays and baggage loss/delay. While I can't speak for all companies, Travelex sells a $49 "Transportation Pak" add-on that provides you with primary car rental coverage for the duration of your covered trip.

Two notes about how valuable the medical component can be. (a) If you're on a cruise and have to visit the ship's doctor, you'll rack up a big bill. With a Travelex policy, the doctor's visit will be covered with a single $50 deductible. (b) If you're on Medicare, you don't have any medical coverage outside the country ... unless you have this kind of supplemental protection.

Please be aware that only Travelex (or whatever company you choose) can provide authoritative answers to your "what if" questions about what's covered by its policies.

copyright (c) 2017 by Ourisman Travel LLC. All rights reserved. We provide Virtuoso and other Preferred Partner amenities as an affiliate of Brownell, a Virtuoso® Member. If you have comments on this column, or questions about booking travel, email me or visit my website.