Renting A Car This Summer? What You Need To Know Before Reaching The Rental Car Counter
Progressive helps travelers answer that dreaded question: Would you like to buy the rental car waivers?
MAYFIELD VILLAGE, Ohio - May 24, 2004 - It's a scene that will play out during countless vacations this summer: You stand at the rental car counter, questioning whether you should spend money on the optional damage waivers offered by the rental company. If you've ever found yourself in this situation -- you're not alone.
A recent survey by the Progressive group of insurance companies found that many drivers don't understand what protection is provided by the optional waivers. In fact, nearly three out of four respondents (72 percent) did not know what kind of protection is provided by supplemental liability waivers. Slightly more than half of drivers were aware that a loss damage waiver could relieve the renter of all financial responsibility for a loss or damage to the car. Fewer than half (52 percent) of the respondents (43 percent) were aware that personal accident and effects coverage could protect the renter and his or her passengers against accident, injury and loss to personal property.
The online survey of more than 500 drivers who indicated that they had rented a car for pleasure in the past three years revealed that one in four (25 percent) said they always or sometimes bought rental car damage waivers did so because they were not sure if they were already covered by their personal auto policy, and 15 percent said they felt pressured to buy the waivers.
Despite confusion, many drivers don't take the time to determine if they should purchase rental car damage waivers, even though they can add significantly to the cost of a rental. Optional waivers can cost between $7 and $25 per day, depending on the rental car company, vehicle make and model and type of waiver.
The Progressive survey showed that more than one in four consumers (27 percent) do "nothing" to determine if they need to buy the damage or liability waivers sold by rental car companies. Almost twenty-six (26) percent review their credit card policy or contact their insurance agent to see if they need additional coverage. Among those who purchased optional waivers from the rental car company because they were not sure if they were already covered by their personal auto policy, only thirty-five (35) percent reviewed their policy first to determine if they needed additional coverage.
To help vacationers better understand the protection provided by optional rental car damage waivers and determine if they need them, a Rental Car Damage Waiver Guide is now available on progressive.com. Drivers can use the free, printable guide to review the coverages they have in their current auto insurance policy. The guide also lists each type of rental car damage waiver, explains what each covers, and describes typical circumstances in which a customer might want to buy them.
"We know deciding whether to buy optional waivers offered by rental car companies can be a confusing experience for a lot of people," said Tom Hollyer, product development manager, Progressive. "We want people to have the information they need to make more informed decisions about car insurance. Knowing whether you need to buy additional coverage can give you peace of mind and could save you money."
The Progressive group of insurance companies, in business since 1937, ranks third in the nation for auto insurance based on premiums written and provides drivers with competitive rates and 24/7, in-person and online service. The companies offer insurance by phone at 1-800-PROGRESSIVE, online at progressive.com and through more than 30,000 independent insurance agencies in the U.S. Providing stakeholders the information they need to make more informed decisions is a key company strategy. In 1994, Progressive became the first auto insurance company to provide its rates alongside the rates of other companies so consumers could easily compare and decide. In 2001, Progressive became the first Fortune 500 company to report operating results monthly and in August 2003 the Company began reporting earnings per share monthly. The Common Shares of the Progressive Corporation, the Mayfield Village, Ohio-based holding company, are publicly traded at NYSE: PGR. More information can be found at progressive.com.
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