Rental car insurance is a gamble. You may get away without it, but the odds are not in your favor unless you have some form of additional insurance. Your regular car insurance policy probably covers any vehicle you are driving, but the gaps in your personal coverage may spoil your trip and cost you a lot of money.

DON’T WAIT until you’re at the car rental counter! Make a couple of phone calls to your insurance company and the major credit card company you’ll be using for rental. Ask what is covered and what isn’t. My guess is the list of non-covered rental car insurance items is longer than you think. Don’t feel alone in your confusion. Most people wouldn’t even think to ask about some of the possible gaps in coverage.

Here are some coverage items you need to ask questions about:

1) Am I covered if I have an accident that results in the “loss of use” of the vehicle to the rental car company, while the car is being repaired?

2) Am I covered for theft or vandalism to the car or my property?

3) How much coverage do I have on my current automobile, in terms of  comprehensive and collision. If you’ve dropped either to save money, your rental car insurance is not going to have either coverage.

4) Who pays for administrative fees, towing fees, diminished value of the rental car due to an accident, medical and ambulance fees or damages to private property.

5) Am I covered for auto rental insurance if this is a business trip, rather than a recreational trip?

Fortunately for you, most of these questions are easy to answer. Between your credit card company, auto insurance firm and your homeowners insurance policy, most of these areas are covered. If you still have some doubts about an accident, ask the rental car company about a loss damage waiver (LDW).  An LDW is technically not a rental car insurance product. It may cost you a few bucks a day, but it will protect you if the rental car is damaged or stolen.

After you’ve done some planning, you may find that no additional car insurance policy is necessary. Between your credit card firm and your regular auto insurance policy, you may have all the bases covered and you can just have some fun on your vacation. When in doubt though, ask your regular insurance company for a temporary insurance rider. It’s a lot cheaper than shelling out the big bucks if you do have an accident.

We all want to save money with discount car insurance. Expenses in all areas of our lives are getting out of hand. Everywhere we can trim a few bucks is money that can go for other purposes. My caution is make sure that certain things are included in your online car insurance policy, before you drop your existing coverage for budget car insurance.

You have general protections.

Let’s face it, all car insurance companies are regulated. They must have adequate reserves to cover losses. They must operate within guidelines set up by laws that protect the consumer. They must be responsible to their shareholders and not operate in a manner that would jeopardize the company’s value.  These protections are similar across the board between the larger insurers and the smaller discount car insurance companies. Where they differ is the types of coverage offered and the policy restrictions.

Here are a few “Fine Print” items to check out:

Does the insurer allow your repair shop to use OEM parts? OEM (original equipment manufacturer) parts are most often guaranteed by the auto manufacturer.  Aftermarket parts can be cheap imports from who knows where? Will the discount car insurance company stand by those parts, if they won’t allow OEM? Some do, but most ask you if you’ve read the fine print in your car insurance policy. After grabbing your magnifying glass, you may discover that in the smallest print still legible, you are stuck if the aftermarket parts fail. Many large companies offer discount car insurance, too, and use the same tactics.  It’s just something to be aware of, so you can decide whether the money you save is worth it.

Does the fine print allow you the right to sue?

Retaining the right to sue is very important. Many discount car insurance policies force you to go to binding arbitration, if there is a dispute between you and the insurer. I don’t care to put my fate into the hands of arbitration. You never know how that will turn out. Many times, it depends on the whims of the person in charge.  I’d rather take my chances in court, where the law is clear and you have the opportunity to appeal if the outcome is in favor of the discount car insurance company. With binding arbitration, the decision is final and you live with it.

These are just a few of the areas to check on when buying cheap car insurance online. A very attractive quote may turn around and bite you, so don’t cancel your old car insurance policy until you are sure the new insurer meets your needs.