Insurance

One of the most common extra charges is for insurance, usually referred to by rental companies as collision damage or Loss Damage Waiver (LDW). For an extra $10 - $25 a day, you can avoid liability for any damage to the vehicle, provided you're not found guilty of gross negligence. Insurance is optional in most states, although in a few states it is compulsory and built into the basic car rental cost.

Before you purchase the extra insurance, check to see if your regular car insurance covers you in a rental car. Most policies do. Some credit cards also provide insurance; check with your company to find out. Other optional insurance coverages include Personal Accident Insurance (PAI), Personal Effects Coverage (PEC) and Additional Liability Insurance (ALI), which you can purchase from the rental company. Again, your best bet is to check your existing policy to see whether you're comfortable with the coverage you already have.