 TITLE: Do I Need Insurance to Rent a Car? CONTENT: Rental Car Insurance Options\n----------------------------\nAfter you determine what your car insurance and your credit card cover, consider whether you need any of the rental agency's insurance products. You'll generally be offered four types of rental car coverage:\n1.  **Loss damage waiver (LDW) or collision damage waiver:** This covers damage to or theft of the rental car, similar to the collision and comprehensive coverage in a car insurance policy. Most LDWs also cover loss of use while the car is being repaired; some also cover towing or any administrative fees the rental company charges. Clarify what is covered and what might void the coverage; for example, accidents due to speeding, driving while intoxicated or driving on unpaved roads are typically not covered. Cost: $9 to $19 per day.\n2.  **Liability coverage:** This provides financial protection from lawsuits related to accidents you cause while driving the rental vehicle. Car rental agencies must provide the minimum amount of liability insurance required by state law. However, these minimums tend to be low, so you may want to buy supplemental liability insurance to protect yourself. Cost: $7 to 14 per day.\n3.  **Personal accident insurance (PAI):** PAI covers medical bills for you and your passengers. If you have health insurance or have medical coverage or personal injury protection through your car insurance policy, you probably don't need PAI. Cost: $1 to $5 per day.\n4.  **Personal effects protection (PEP):** PEP covers personal items stolen from the rental car. Homeowners or renters insurance that includes off-premises coverage generally covers this, but you'll have to pay your deductible if you file a homeowners claim. If the car rental company's PEP doesn't have a deductible, paying $1 to $4 per day for this coverage may be worthwhile.\nBefore purchasing any type of coverage from the rental car company, make sure you understand its dollar limits, exclusions and requirements—and whether you may already be covered by your insurance policy or your credit card's policy. END