Insurance for rental car

Question

I've never purchased car rental insurance and never had a problem, but now am I due (for problems)?

Just get Loss Damage Waiver (LDW)

Covers all vehicle damage - which covers rental car, regardless of fault?

Answer

When renting a car in Maui (or anywhere in Hawaii), understanding insurance options is important, especially if you haven’t purchased rental insurance before. Here’s a breakdown of what you need to know about the Loss Damage Waiver (LDW) and your options.

Loss Damage Waiver (LDW):

The LDW is not technically insurance—it is a waiver offered by the rental company that covers you for damage to or theft of the rental vehicle. Essentially, it limits or eliminates your financial responsibility if the car is damaged or stolen, regardless of who is at fault.
LDW typically covers most types of physical damage to the rental car, including collision, vandalism, and sometimes theft. It may not cover certain exclusions such as off-road use, driving under the influence, or unauthorized drivers.
Purchasing LDW means you generally do not need to use your personal auto insurance for the rental car, which can be convenient if your personal policy has a high deductible or limited coverage outside your home state.

Other Considerations:

Check if your personal car insurance or credit card provides rental car coverage. Some credit cards automatically provide LDW coverage if you use the card to pay for the rental. However, coverage may have limitations, so read the fine print.
Liability coverage (injury or damage to others) is separate from LDW and is required by law. In Hawaii, rental companies usually include the minimum required liability coverage in the rental rate, but you may want to consider additional coverage for peace of mind.
Optional add-ons like Supplemental Liability Insurance (SLI), Personal Accident Insurance (PAI), or Personal Effects Coverage (PEC) can provide extra protection but are not strictly necessary if you have existing coverage through your personal insurance or credit card.

Summary:

LDW covers damage or theft of the rental car regardless of fault and is a convenient way to avoid out-of-pocket expenses.
Check your personal auto insurance and credit card benefits before purchasing LDW to avoid duplicate coverage.
Consider whether additional liability or personal coverage is needed, depending on your comfort level and risk tolerance.

In short, purchasing the LDW provides peace of mind for rental car damage or theft, especially if you want a simple, worry-free option. You are not automatically “due” for problems, but having LDW ensures you won’t be financially responsible for unexpected damage during your Maui trip.