Picture this, you’re going on vacation you’ve rented a car. You go to the car rental company, go up to the counter, they ask you if you want to take the insurance on the rental car.
They offer you a bunch of confusing coverages like
- CDW coverage
- SLP coverage
- PEC coverage
Should you take it?
Well, the first thing you should do is have a basic understanding of the coverages that you’re being offered.
- CDW coverage generally stands for collision damage waiver coverage and this covers the damage to the rental car itself. Now, if you have a New York personal auto policy that personal auto policy will cover the damage to your rental car. If you’ve charged the rental car to your credit card there’s a real good chance that your credit card company also has some benefits to cover the damage to the vehicle itself, so I’m not sure that you need the CDW coverage in that case.
- The SLP coverage which is supplemental liability protection and that provides liability coverage or additional liability coverage of up to $1,000,000 in case somebody sues you as a result of an accident that you have with the rental car. But the rental car itself has at least minimum limits of liability in New York that’s 25/50/10 but on top of that again assuming you have a personal auto policy your personal on a policy will stack on top of that so you don’t be covered for the car rental plus your own personal auto policy plus any benefits that the credit card company might have that would apply to that. So I’m not sure you even need the SLP coverage.
- Then there’s the PEC coverage or personal effects coverage. Now this could cover theft of personal property that were in the rental car if you should get broken into but that is a limit of like $500 per person a maximum of $1,500 per rental car.
So, bottom line, do you need to take the insurance? Maybe…maybe not. I don’t think so if you have a personal auto policy in New York you’re probably covered well enough.
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