Basic Insurance Guide
Understanding Hawaii Rental Car Insurance Options
Protect Yourself Against Unexpected Costs & Financial Liabilities
1. Reviewing Your Existing Personal Policies & Credit Cards
When renting a car, understanding your insurance coverage is essential to avoid unexpected out-of-pocket costs. Many credit cards and personal auto insurance policies offer rental vehicle coverage, but the scope can vary substantially.
For example, credit card coverage often applies only to Economy through Full-Size vehicles—excluding Specialty, Luxury, or SUV rentals. Furthermore, some personal policies exclude rental vehicles entirely or provide limited state coverage. Always review your policy terms before arriving at the counter.
2. Counter Options: Loss Damage Waiver (LDW) & Supplemental Liability (SLI)
Purchasing optional coverage directly from the rental counter provides robust protection against accidents, theft, and third-party liability claims:
- Loss Damage Waiver (LDW): Protects against physical damage or theft, helping you avoid out-of-pocket deductibles and personal insurance premium increases.
- Supplemental Liability Insurance (SLI): Provides primary coverage for third-party injury and property damage claims.
3. Understanding Gap Coverage
In the event of total loss or theft, standard insurance policies typically pay only the vehicle's actual cash value, which may fall short of your financial agreement with the rental company.
For instance, if a $20,000 rental vehicle is stolen and standard insurance pays $15,000, you could be liable for the $5,000 difference. Gap coverage protects you from paying this difference out of pocket. Check whether your primary policy or credit card includes gap protection before purchasing it at the counter.
AA Aloha Cars R Us invites you to review daily agency insurance pricing in detail: