New York State
Eric R. Dinallo Superintendent of Insurance 25 Beaver Street New York, N.Y. 10004
|ISSUED 11/19/2007||FOR IMMEDIATE RELEASE|
WHAT YOU NEED TO KNOW ABOUT INSURANCE BEFORE REACHING THE CAR RENTAL COUNTER
Survey Reveals Confusion Among Consumers Regarding Rental Car Insurance
A large percentage of U.S. consumers are confused about whether to buy insurance when renting a car, according to new research by the National Association of Insurance Commissioners (NAIC) and the New York State Insurance Department. In fact, many people purchase insurance at the rental counter without knowing whether their existing auto policies or credit card benefits already cover their needs.
“When renting a car, many consumers purchase unnecessary insurance and end up wasting money. Meanwhile, other drivers inadvertently underinsure their rental car, placing themselves at risk,” said New York State Insurance Superintendent Eric Dinallo. “As travel increases around the holiday season, the New York State Insurance Department encourages consumers to investigate whether their existing auto insurance provides sufficient protection for car rental.”
The New York State Insurance Department and the NAIC’s national survey of 632 consumers, conducted from Sept. 19-30, 2007, revealed these findings:
“Drivers should educate themselves before they reach the auto rental counter,” Dinallo said. “Carefully review your auto insurance policy and check with your credit card issuer about auto insurance benefits. Protect yourself and save money by taking a few precautions and asking the right questions.”
Prior to renting a car, Dinallo recommends that renters ask the following questions:
The New York State Insurance Department’s Consumer Guide to Auto Insurance offers comprehensive information on auto insurance. This free booklet is available by calling the Department at 1-800-342-3736 or visiting the Department’s website at www.ins.state.ny.us.
Car Rental Insurance Tips from the New York State Insurance Department and the NAIC’s Insure U Web Site
Get more information about the types of insurance products car rental companies tend to provide, as well as additional auto insurance information by visiting www.InsureUonline.org and the New York State Insurance Department’s website at www.ins.state.ny.us. You can also get extensive information, tips and considerations regarding life, health and home insurance by life stage. The entire site is available in Spanish at www.insureuonline.org/espanol.
ABOUT THE NAIC
Headquartered in Kansas City, Missouri, the National Association of Insurance Commissioners (NAIC) is a voluntary organization of the chief insurance regulatory officials of the 50 states, the District of Columbia and five U.S. territories. The NAIC’s overriding objective is to assist state insurance regulators in protecting consumers and helping maintain the financial stability of the insurance industry by offering financial, actuarial, legal, computer, research, market conduct and economic expertise. Formed in 1871, the NAIC is the oldest association of state officials. For more than 135 years, state-based insurance supervision has served the needs of consumers, industry and the business of insurance at-large by ensuring hands-on, frontline protection for consumers, while providing insurers the uniform platforms and coordinated systems they need to compete effectively in an ever-changing marketplace. For more information, visit NAIC at www.naic.org/press_home.htm.
ABOUT THE NEW YORK STATE INSURANCE DEPARTMENT
Established in 1849, the New York State Insurance Department supervises and monitors the financial condition and market conduct of insurers in the state. The Department has responsibility for approving corporate formations, mergers and consolidations of insuring organizations, licensing insurance agents, brokers, adjusters, consultants and reinsurance intermediaries and disciplining licensees who violate the Insurance Law. The Department regulates premium rates and policy forms and provisions, services complaints and inquiries from consumers, administers the affairs of companies that are placed in liquidation or rehabilitation and investigates insurance fraud. For more information, visit www.ins.state.ny.us.