Travel Agent - December 10, 2007 - (Page 76)

TR ANSPORTATION Car Rental Quandary Study suggests that consumers are confused about whether they need to buy insurance BY DAVID EISEN CAR RENTAL INSURANCE MAY be the last thing travelers worry about when it comes to their vacation. Yet if your clients don’t take time to consider it, they may be left paying more than they’d expected for a car rental—and not just because of higher prices at the gas pump. Now is a good time for clients to get straightened out on whether they need to pay for insurance (usually called a damage waiver) when renting a car, according to the National Associa- knowing if they’re already covered under their own auto insurance or credit card benefits. In a survey of 632 consumers conducted by the NAIC in September, 42 percent of respondents said they were completely confused or had only a rough idea about insurance coverage when renting a car; 34 percent said they purchased the rental company’s insurance just to make sure they were covered; and 24 percent said they were not sure if their credit card pro- Doing some research on insurance beforehand could make for a much smoother car rental experience tion of Insurance Commissioners (NAIC), a Kansas City-based organization whose objective is to assist state insurance regulators in protecting consumers. “As travel increases around the holiday season, the NAIC encourages consumers to investigate whether their existing auto insurance provides sufficient protection for car rental,” says Walter Bell, NAIC president and Alabama’s insurance commissioner. A new study by the association indicates that nearly half of U.S. consumers are befuddled over whether or not to purchase insurance when renting a car. Many consumers are inclined to go ahead and buy it without even 76 | TravelAgent December 10, 2007 vided insurance coverage for car rentals. “Drivers should educate themselves before they reach the auto rental counter,” says Catherine Weatherford, the NAIC’s executive vice president and CEO. “Carefully review your auto insurance policy and check with your credit card issuer about auto insurance benefits. Protect yourself and save money by taking a few precautions and asking the right questions.” So just what are the correct questions to ask? Remind your clients to ask their auto insurance agent if there are any situations where their policy does not cover rental cars. Also, tell them to check with their credit card company about provisions and limitations on rental car coverage. All of these questions should be asked and the responses understood before making a car rental reservation. Finding out the answers is important for another reason: It could save your clients money, and who doesn’t want that? “When renting a car, many consumers purchase unnecessary insurance and end up wasting money,” says NAIC president Bell. “Meanwhile, other drivers inadvertently underinsure their rental car, placing themselves at risk.” Most auto insurance policies, says Jane Klein, insurance commissioner of West Virginia, protect consumers when renting a car, rendering the purchase of collision damage waiver unnecessary. “We are trying to encourage consumers to understand what their actual insurance needs might be,” Klein says. “On top of that, it’s smart to know so they don’t spend money needlessly.” The issue is also an opportunity for travel agents to educate their clients. Car rental insurance is not the sexiest topic to talk about, but showing clients you care about every aspect of a trip can encourage future business from them. “The better travel agents understand the insurance aspects and credit card companies, the better off their clients will be,” Klein says. “They can then educate their individual clients upfront and, in some instances, save them a great deal of money.” To find out more about the types of insurance products that car rental companies tend to offer to customers, as well as additional auto insurance information, visit the NAIC’s consumer-education web site at www.insure uonline.org. I CONNECTING YOU For more information on insurance for car rentals, visit www.travelagentcentral.com/carinsurance http://www.insureuonline.org http://www.insureuonline.org http://www.travelagentcentral.com/carinsurance

Table of Contents Feed for the Digital Edition of Travel Agent - December 10, 2007

Travel Agent - December 10, 2007 Online Now From the Editor Contributors Europe: Liverpool, The Beatles Hometown, Is also Known for it's Maritime Heritage, Art and Architecture European Hotel Highlights Central and South America: What You Need To Know About Selling Quito, the Historic Capital City of Ecuador Pacific/Asia: Malaysia Seeks to Grow Tourism as it Celebrates the 50th Anniversary of it's Independence Spa Resort in Goa, India Caribbean: Venerable Jamaican Resorts Tryall Club and Half Moon Marry Contemporary Design and Old-Time Elegence Caribbean Deals Las Vegas: A Three-Day Itinerary for Your Gen-Y Clients Las Vegas News and Notes Hotels: Sandals' 6th Annual Star Awards Tours: Escorted and FIT Packages in Western Canada Cruise: Barging 101 Cover Story: Wyndham's Way Agent Profile: Casto Travel's Marc Casto Technology Transportation Agenda: Fam Trips, Deals & Incentives, Calendar Carnival's Plans for the Future Fairmont Expands in Africa Liberty Travel/Gogo is Sold Turks and Caicos Developments The New River Cruise Line, Jewel How to Protect Yourself When a Tour Operator Shuts Down In the Spotlight Classified Marketplace Editorial Index Advertising Index Trendwatch Special Supplement: Destination Africa

Travel Agent - December 10, 2007

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