Consumers At Sea Over Auto Rental Insurance

Forty-two percent of U.S. consumers are confused about whether to buy insurance when renting a car, a survey has found.

The research was conducted by the National Association of Insurance Commissioners (NAIC), which said that many people at the auto rental counter purchase insurance without knowing whether their existing auto policies or credit card benefits already cover their needs.

Many consumers “purchase unnecessary insurance and end up wasting money. Meanwhile, other drivers inadvertently underinsure their rental car, placing themselves at risk,” said NAIC President and Alabama Insurance Commissioner Walter Bell.

The NAIC's national survey of 632 consumers, conducted Sept. 19-30, 2007, found:

o Approximately 42 percent of respondents said they were either thoroughly confused or had only a rough idea about insurance coverage when renting a car.

o Thirty-four percent of respondents said they purchased the rental company's insurance just to make sure they were covered.

o Twenty-four percent of consumers were not sure whether their credit card provided insurance coverage when renting a car.

NAIC said it recommends that renters ask insurance agents if there are any situations in which their existing auto policy would not cover a rental and query their credit card company what the limitations are on rental car coverage.