Do your summer vacation plans include renting a car?  Do you accept or decline the car rental agency's coverages and waivers?  Properly insuring a rental car can be confusing.  Before renting a car, here are some tips to consider.

Step 1. Determine whether your own auto policy will cover the rental car.
Call your insurance agent and find out what kind of coverages you have.  In most cases, whatever coverage and deductibles you have on your own car would apply when you rent a car, providing you are using the car for recreation and not for business.  If you have dropped either comprehensive or collision on your own car as a way to reduce costs, you will not be covered if your rental car is stolen or damaged in an accident. 

Step 2. Check with your credit card company.

Insurance benefits offered by credit card companies differ by both the company and/or the bank that issues the card, as well as by the level of credit card used.  Call the toll-free number on the back of the credit card you will be using to rent the car and ask the credit card company to send you their coverage information in writing.  In most cases, credit card benefits are secondary to either your personal insurance protection or the insurance offered by the rental car company.

Step 3.  Be cautious if you're leaving the state—or the country.
In the United States, insurance laws are different in every state.  But, in most states, you're covered as long as you drive in the US.  However, many policies may limit coverage if you travel to Canada and very few will cover travel to Mexico. If you're traveling outside the country, buy the coverage with the rental car agency. 

Step 4. Don't let a stranger drive your rental car.
Or your best friend, partner, or your teenager.  States have minimum age requirements for renting a car and most rental car companies refuse to rent a car to someone who is under 21 and in some cases under 25. Rental car companies are picky about who drives their car and any coverage you have on your own policy (or the rental car policy) may not cover another driver—unless they are listed on the rental contract.