Car Rental Insurance Demystified: What You Really Need to Know
Navigating car rental insurance options can be confusing. At the counter, you're often presented with a list of acronyms: LDW, SLI, PAI, PEC. Here’s a simple breakdown:
Loss Damage Waiver (LDW) / Collision Damage Waiver (CDW): This is not technically insurance, but a waiver. It means the rental company waives its right to charge you for damage to the car if an accident occurs. This is the most important coverage to consider.
Supplemental Liability Insurance (SLI): This provides extra coverage if you injure someone or damage their property in an accident, beyond the state's minimum liability requirements.
Personal Accident Insurance (PAI): Covers medical costs for you and your passengers.
Personal Effects Coverage (PEC): Covers theft of your personal belongings from the rental car.