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Rental Car Insurance from Travel Guard - Beware!

Travelers should be aware that rental car insurance from Travel Guard covers only collision damage, not theft. Other travel insurance companies, like Travelex, do include theft protection. If travelers decline collision (CDW) insurance with the rental company, they may also be declining theft insurance , and end up with no coverage at all in case of theft of the rental car.

For example, if renting a car for France from Auto Europe, it is much cheaper to use their basic rate, decline the rental company insurance, and use rental car insurance from a travel insurance policy. Their basic rate generally includes liability and fire insurance, but not collision or car theft coverage. However, if you use Travel Guard for your trip's rental car insurance, you will ONLY be covered for collision damage, NOT car theft.

With the prevalence of theft in some European companies, this is a glaring deficiency in Travel Guard's rental car policy. As always, you should read the travel insurance policy coverage document carefully. Even if you use the Travelex rental car insurance, the car rental agency will likely "block the deductible" on your credit card, meaning they charge the deductible amount you would be responsible for under their insurance to your credit card, even if your Travelex rental car policy has no deductible. In the case of Auto Europe car rentals in France, this amount may be 850 Euros, or nearly$1200, which presumably would be refunded upon safe return of the rental car.

Note that "theft" coverage in this case refers to theft of the car only, not theft of your personal belongings from the car.

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