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It Pays to Do Homework Before Renting a Car


Everybody knows you should be alert when sitting behind the wheel of a high-powered car. But it pays to be just as wide-awake when you step up to the counter of a car rental agency. No other aspect of travel is quite so confusing as renting a car, and if you make a mistake it could cost you plenty in wasted time and money.

A profusion of choices awaits, but probably the most notorious is the so-called Collision Damage Waiver, an option most car firms offer at a cost of as much as $13 a day. Should you sign up for it? Probably not, if your own auto insurance covers you in case of an accident while operating a rental car. But accepting or rejecting the CDW is only one of many decisions faced that could affect the rental price. Among the others:

--The number of drivers. Some car rental firms charge extra for a second driver if you want to share the driving chores with someone else. In some cases, you must pay extra even for a spouse. If two of you plan to drive, it's a factor to consider when looking for the best deal.

--The age of the driver. If you are under 25, you can expect to pay substantially more to rent a car. The price varies depending on the rental firm, so you should shop around. Actually, some companies refuse to rent to anyone under 25 and most require that you be at least 21. An exception is a young business traveler whose employer holds an account with the car rental firm.

--Credit blocks. In Florida, the busiest car rental market in the country, consumer groups have criticized certain unusual rental practices that may trip up an unwary visitor. Among them is the credit card block. If you don't sign up for the Collision Damage Waiver option, some rental firms may put a credit hold of up to $3,000 on your Visa or MasterCard until you return the car.

"You may have nothing left on your line of credit, and then you can't charge your hotel room," says Monte Belote of the Florida Consumer Action Network in Tampa. Belote's advice, if a credit block is threatened: "I would walk to the next car rental counter."

--The type of rental-car operation. Is the location where you pick up the car owned by the rental corporation, or is it an independently owned franchise? Although a franchise may carry the recognized name of a national rental firm, such as Hertz or National, some of them set their own rental policies. Don't count on getting the same deal at a franchise that you might from a corporately owned location.

--The day of the week. In Orlando, the home of Disney World, the rental market is primarily leisure, says Jan M. Armstrong of the American Car Rental Association in Washington, D.C. As a result, prices tend to be cheaper during mid-week, when fewer vacationers show up, and jump during the busy weekend. Chicago, on the other hand, is a business city. Demand for cars is greatest in mid-week, and so the price is higher. The Chicago bargains come on the weekend.

--Collision Damage Waiver option: The CDW option may no longer be quite the irritant it has been in the past to renters. Most rental firms offer it, but frequent travelers have become aware that they may be adequately protected without it.

If you take the option--at a cost of perhaps $2.50 to $13 a day--the rental company assumes responsibility for any damage if you wreck the rental car or it is stolen from you. If you don't take the option, you are responsible for repairs or replacement.

If you are traveling on business, your employer's policy should cover you--although you should make sure that the company plan offers full protection. On a personal trip, your own auto insurance policy may protect you. About 60% of the auto policies in effect in this country provide coverage for rentals. However, before relying on your personal policy, check to make sure what coverage is offered.

A brochure distributed by National promoting the Loss Damage Waiver, National's version of the CDW, suggests asking your insurance agent, "Will my insurance cover the replacement value of the rental car or only my personal car if my personal car is worth less?"

An additional form of protection is provided if you charge the rental to any American Express card or to the gold or corporate travel cards of Visa and MasterCard. These cards offer secondary or back-up coverage--that is, they will pay any repair or replacement expenses not covered by your personal insurance. If you have a $500 deductible on your auto policy, for example, the cards will refund the deductible to you.

In addition, the cards provide primary coverage for rentals outside the United States, where your personal auto policy probably is not valid.

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