Understanding Travel Car Insurance

For the frequent traveler, travel car insurance is a must. This temporary car insurance will protect your rented vehicle in case of accidents, theft or other damages while on vacation. Rental companies demand that you have rental car insurance, which you can buy through the rental company, your current insurance provider or even the AAA.

As the name suggests, travel car insurance protects your rented vehicle while you are traveling. Rental companies don't want to have to cover the loss of a vehicle if it is destroyed in a collision or stolen, and you don't want to have to pay to replace the car, so rental companies require insurance in order to compensate for this risk.

It's easy to get car insurance abroad, and there are three different ways to conveniently obtain it: If you don't already have a travel car insurance policy, rental companies can automatically charge you a dollar amount per day in order to insure their car. This is available at the counter when you are renting your car and only takes a few minutes to set up. If you travel frequently, you may find it less expensive to hold a travel car insurance policy which applies to all your rental cars. This sort of policy should be available through your current car insurance provider, and you may even be able to get a discount for holding multiple policies with them. The AAA also offers travel insurance similar to auto insurance providers. You can compare rates with them to ensure you're getting the best deal on insurance.

Travel Insurance Is Not Travel Car Insurance
Travel insurance generally covers trip cancellation and delay, lost baggage and medical issues while abroad, not auto-related property damage. Travel car insurance usually needs to be specifically inquired about and is not covered in basic travel insurance. You can call your insurance provider if you have questions about what specifically is covered by travel insurance.

You Need a Special License
If you're planning on purchasing car insurance abroad for a rented car, you need to have an international driver's license to rent or insure a vehicle. This can be obtained at an AAA office.

Check Your Credit Card Companies
Some credit card companies, like MasterCard, will insure your rental car overseas if you use their credit card to rent the car. Different qualifications for this insurance apply, so ask your credit card company for details.

Insurance Might Be Included
Some rental car companies automatically insure rented cars or will charge an insurance fee at the time of rental. Before spending money on travel car insurance from a different source, see if the company you plan to rent from provides car insurance. Discuss this with your travel agent when you are planning to rent a car abroad to determine whether or not you will have insurance in the event of an accident.

Compare
Since travel car insurance is often available through many different providers--insurance companies, credit card companies, or rental car companies--shop around to see what prices different providers offer. With so many options available, you should be able to find a very reasonable price through at least one provider.

Online sites will also allow you to do a side by side comparison for a policy that will protect you while you are traveling abroad. Discuss with your insurance agent or online agent how much time you will be spending abroad so that they can design a policy just for the trip.