What started off as a very cheap trip through the purchase of cheap airplane tickets or discount travel packages can turn out to be quite expensive if you dont do your homework before renting a car abroad. The most common mistake made by Americans renting cars abroad is to assume that there is no need to purchase car insurance because their personal car insurance will cover them in the event of an accident.
While it is true for most travelers who already have car insurance that additional car insurance through the rental company is expensive and not needed when renting in the U.S., this is not the case in a foreign country. Personal auto insurance from most companies, including Allstate and Travelers, seldom covers vehicles rented abroad.
Many credit cards, though not debit cards, provide auto insurance that covers car rentals abroad at no additional cost. American Express, Discover, MasterCard, and Visa usually offer collision damage waivers for both domestic and foreign rentals, but coverage is patchwork, with plenty of exclusions and claim requirements that vary from card to card. If you are hoping that your credit card company will provide rental insurance in a foreign country, it is incumbent on you to call that company prior to your departure to confirm exactly what is covered.
American Express offers a unique insurance plan exclusively to its card members, called Premium Car Rental Protection which provides primary insurance with no deductibles for a flat $24.95 per rental. Unfortunately this plan is not offered in all foreign countries.
Dont assume anything prior to renting a car abroad. Features like automatic transmission, air-conditioning, power brakes and windows often need be requested specifically when making your reservation.
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