Bruce Ream: Hi, I am Bruce Ream, Managing Director of AAA Partnership Programs. Today, I'm going to discuss how to determine if you needed to purchase rental car insurance. Some traveler spend valuable vacation dollars on insurance not realizing they are covered by existing policies or credit card benefits, while others decline insurance and expose himself to great risk.

There are simple steps you can take to insure you and your loved ones are covered medically and financially while you rent a rental car. The first step is evaluating your current insurance, contact your agent and ask if your current automobile policy protects you in renting a car. Are you protected if the car is damaged in a crash, stole, or vandalized? Provide your agent with trip details including how long, and where you'll be traveling.

Ask if you and your passengers will be covered for injuries sustained in the crash as well as liability coverage for any claims made against you. Some credit cards provide coverage if the car is used to pay for the rental. Credit card rental coverage generally covers damage to the car not liability claims. Be sure to verify the extensive coverage before each trip. Some may require you to pay for repairs in advance and seek reimbursement.

If you find your insurance policy and credit cards benefits supply sufficient protection make use to decline the coverage and or the loss damage waiver or collision damage waiver. These waiver when purchased alleviate the rental from all financial responsibilities for theft, vandalism, and lost or damage to the rental car, while liability coverage protects you from third party claims. Remember, you will be held responsible for any damages not covered.

Other types of insurance available from car rental companies include personal effects coverage and personal accident insurance. Personal accident insurance allows you to elect accidental death and accidental medical expense coverage for yourself and your passengers during the rental period. Before you decline this coverage check your health and car insurance policies to see if ambulance and medical bills will be covered.

Personal effect coverage protects your personal belongings while in rental car, such as luggage, sporting equipment, and laptops that are damage, lost, or stolen. The current home motors policy may cover your belongings. So that's the basic of how to determine if you need rental car insurance. Safe travels!