Rental car insurance protects from financial wreck
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Call your credit card company and get the results in writing -- they can fax you the information if you're in a hurry. If you're not, call them twice. It's not unheard of to get two different answers to the same question from the same company.

"There's an 800-number on the back of the credit card," says Salvatore. "Call and ask specifically how much coverage do you have and for what."

When you talk to your credit card representative, ask about collision and liability. Then find out if there are any exclusions. Besides excluding certain types of cars, some companies will refuse to cover you if you're driving outside the U.S. Others will cover you, but only for a limited time.

Many credit companies will not allow you to use their collision insurance if you purchase any from the rental car company. But because some cards do not include liability coverage, they will allow you to purchase that. Merely having "insurance" isn't enough -- find out what kind and how much.

Over-the-counter insurance
Think you might be interested in over-the-counter coverage from a rental car company? You guessed it -- you've got a couple more phone calls to make. When it comes to the coverage they offer, all car rental companies are not created equal. For $10 to $25 per day, on average, some companies will offer collision, liability, contents and life insurance -- while others just provide collision. Even collision coverage differs. Some firms cover anything on the car. Others exclude a few of the basics, like tires, wheels and glass -- bad news if you get a flat or crack a windshield.

If you purchase over-the-counter rental insurance, ask about those dreaded exclusions. Usually, you won't be covered at all if your accident is the result of outrageous behavior on your part, according to Salvatore. So if you crunch a fender going the wrong way down a one-way street in a strange city, you could be on your own. Thinking of having a few margaritas while you're out on the town? Take a cab -- it's cheaper in the long run.

Want to do some wandering in your rental car --either across state borders or into Canada or Mexico? Find out ahead of time if the company's insurance will still cover you.

Avoiding a rate hike?
Some vacationers pick up the rental insurance believing that if they have an accident, they'll be protected from a rate increase from their regular insurance company. Wrong.

If you have an accident in a rental car and you're at fault -- your home insurance company can raise your rates no matter who picks up the tab, according to Michael Sullivan, a spokesman for State Farm Insurance.

Thinking of not reporting that rental car fender bender to the company back home? Bad idea. Instead, you should call your insurance company as soon as you get back to your hotel. If the worst happens and your credit card or rental car company doesn't pay -- and you haven't reported the accident to your insurance company -- you could end up paying the damages out of your own pocket.

The family trip
What about letting teens drive a rental car? Can you hand over the car keys without risking your financial future? That depends on whose insurance you're using. If you rely on your regular everyday auto insurance to cover your rental car, chances are that anyone living in your house is covered. If you think you may want your teen to do some of the vacation driving, broach the subject with your agent before you leave home.
If you are relying on credit card or over-the-counter insurance from a car company, your teen might not be covered. Ask the company involved who is allowed to drive, and get the answer in writing. In addition, some rental companies have policies about young drivers -- they may not allow them at all or may charge extra to add them to the rental contract. Find out before you get to the rental counter.
"It's better to ask the questions before you go on your holiday," says Weagley. "People are usually more concerned with whether their swimsuits fit.
"Your insurance is a lot more important."

Dana Dratch is a freelance writer based in Atlanta.