When you need to rent a car, one of the most important things to do is make sure you have insurance. In the event of a theft or an accident in which the vehicle is written off, you must cover the excess value of the vehicle. This can amount to several thousands of dollars that will be added to your rental bill!

Some credit card companies offer special plans when you use their cards to pay for rental vehicles. One of these plans is the Damage Waiver Benefit, and it provides extra coverage for your rental vehicle. The Damage Waiver Benefit is designed specifically to aid you in the event of theft or an accident involving your rental car. The cost of the coverage is waived for all cardholders provided they meet a general set of conditions. This excess coverage means that you're insured in the event that your rental vehicle is stolen or the car is in a bad accident. This may also cover the public liability portion of the accident and insurance as well. The coverage is for the policyholder who is usually also the renter and driver of the car. These optional waivers can be purchased to reduce or eliminate any financial exposure you may encounter, including the entire value of the vehicle and all rental revenue lost during its replacement period.

Some car clubs and driver associations also offer this form of extra coverage to their members, but this coverage isn't free of charge. For an annual fee, which varies among companies, the same level of extra protection can be enjoyed. This offers peace of mind to occasional and frequent car renters alike. They advertise that the cost of the annual premium can be saved in a single month's rental, but not everyone rents cars by the month. This is an excellent plan for those people and businesses that rent several vehicles at a time or many in a month. The extra coverage ensures that there will be no surprises when it comes time to pay the rental fee.

Many plans also offer coverage for a locksmith, should you lock yourself out of your vehicle. The usual towing charges to the nearest repair facility are also generally covered by these plans.

Some plans have stipulations as to the how long the vehicle will be rented. Most will not pay for coverage after thirty consecutive days of rental, and most passenger cars, minivans, and sport utility vehicles are covered, but some restrictions apply. Luxury, exotic, and antique automobiles and some types of vans and vehicles with open cargo beds are generally not covered under this sort of plan.