Are you fully covered?

As I was making a reservation for a rental car in Puerto Vallarta, Mexico, in January ’04, I asked the agent, “Will there be any hidden charges?”

“No other charges,” the Alamo representative answered.

I pondered the booking I had just made, then realized that Alamo’s quote was $200 less than that of other companies I had called. Had I neglected to inquire about all the rental options? While I knew about CDW, I had no information about the amount of coverage for liability, property damage, medical expenses, theft protection and loss of use.

Liability was of paramount importance, since in case of an accident in Mexico, the driver, whether at fault or not, is deemed guilty until monetary awards to the other party have been provided. While after such a “mishap” a trip to the police station is a certainty, a “sojourn” in jail is a possibility. This likelihood is markedly decreased when a person has the proper insurance.

I called Alamo back and spoke to a supervisor, who told me that liability coverage was indeed mandatory, adding $200 to the rental cost.

We decided not to hire a car but to take taxis instead.

Who covers what? — Most travelers (myself included) are so concerned about CDW that we forget about other expenses related to a rental, such as theft, loss of use, liability, medical payments and property damage.

To ascertain what the car rental companies offer and where credit cards fit in, I made a number of phone calls. I found out that liability protection (including property damage and medical expenses) is provided solely by the rental firm.

Diners and my Visa card issuer informed me that they will only pay for physical damage to the car, i.e., theft, loss of use and CDW. Also, duration of this coverage may be limited and the insurance may not be valid in all countries.

I would like to make the following suggestions.

Whenever renting a car, ascertain how much liability (including property damage and medical payments) is included in the rental charge. If necessary, ask if you can increase the liability insurance to an amount suitable to you.

Determine whether you prefer to cover theft protection, loss of use and CDW through the rental company or your credit card. If you opt for the latter, call your card issuer and make sure the coverage (handled through a separate insurance company) is valid in all countries in which you will be driving and that it extends for the duration of your trip.

Good luck in ferreting out additional information whenever you rent a car.

PHILIP WAGENAAR
Contributing Editor, ITN