Travel Deal of the Day (Feb. 7, 2007)

What should you do when you arrive at the rental car counter and they ask you if you want car rental insurance? If you have no other insurance, you likely have no choice but to buy the insurance from the car rental company. But even if you do not have standard car insurance, you may have insurance from other sources.

The Deal:
Various sources provide car rental insurance, often at no additional cost. This can save you a ton of money (versus buying insurance from a car rental company).

How:
Here are some sources of car insurance beyond just the coverage sold by the car rental company:

1) The most likely source of car rental insurance comes from your standard car insurance. Many car insurance policies cover you on any car you drive, including a rental car. To be sure, check with your insurance company.

2) Check with your credit card. Many credit cards provide limited insurance on a secondary basis (meaning that they will cover certain costs as long as those costs are not picked up by any car insurance that you have). A few credit cards provide primary insurance, meaning that they will cover all costs, including those costs already covered by standard car insurance.

3) Some rate plans include limited car insurance coverage. Be sure to check whether your rate plan includes any coverage.

The Inside Scoop:
Most credit card companies do not provide liability coverage for damage to others – they only provide coverage for damage to your rental car. Be sure to check exactly what coverage you have before turning down car rental company coverage.