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

• 34 percent of respondents said they purchased the rental company's insurance just to make sure they were covered.

• 24 percent of consumers were not sure whether their credit card provided insurance coverage when renting a car.

• Ask your credit card company: What are the limitations on rental car coverage?

Car Rental Insurance Tips from the NAIC's Insure U Web Site

• Review your auto insurance policy or call your insurance agent before you reach the rental car counter.
• If your current policy doesn't offer coverage for a rental car, see if an insurance rider can be added for a small fee.
• Many credit cards include some level of collision and theft protection. In most cases, these benefits are secondary to your personal auto insurance or the car rental company's insurance, meaning the credit card company will only pay claims after other insurance coverage has been exhausted. The NAIC recommends you call your credit card company and ask about benefits.
• If you lack personal auto insurance and your credit card does not provide benefits, it might be wise to purchase the liability insurance and collision damage waiver at the car rental counter.
• Keep in mind that if it is a longer-term rental (e.g., a week, a month or more), there might be limitations on the coverage your existing auto insurance policy provides. Check with your insurance company or agent for details.
• If you don't own a car, you might want to consider purchasing a non-owner auto insurance policy, because it provides benefits in addition to coverage for a rental car.
• When traveling on business, a personal auto policy will generally not apply, so check with your employer for guidance.
• Know that you are not alone if you find car rental insurance confusing. If you are unclear about the car rental insurance options, or are concerned that a rental company is misrepresenting information, check with your state insurance department.

Get more information about the types of insurance products car rental companies tend to provide, as well as additional auto insurance information by visiting the NAIC's consumer-education Web site, www.InsureUonline.org. You can also get extensive information, tips and considerations regarding life, health and home insurance by life stage. The entire site is available in Spanish at www.insureuonline.org/espanol.

More information about the NAIC

The NAIC has headquarters in Kansas City, Missouri, the National Association of Insurance Commissioners (NAIC) is a voluntary organization of the chief insurance regulatory officials of the 50 states, the District of Columbia and five U.S. territories.

The NAIC's overriding objective is to assist state insurance regulators in protecting consumers and helping maintain the financial stability of the insurance industry by offering financial, actuarial, legal, computer, research, market conduct and economic expertise. Formed in 1871, the NAIC is the oldest association of state officials.

For more than 135 years, state-based insurance supervision has served the needs of consumers, industry and the business of insurance at-large by ensuring hands-on, frontline protection for consumers, while providing insurers the uniform platforms and coordinated systems they need to compete effectively in an ever-changing marketplace.

Source: NAIC Communications Department