Money Fix: Buy car-rental insurance?

You want to cut costs on your summer vacation; should you skip car rental insurance? Maybe.

Ask yourself key questions before the awkward moment of pressure at the car rental agency counter. Does your personal or business auto insurance policy cover car rentals? Does your credit card? Do your loyalty programs?

"If the answer is yes to any of these, think twice before purchasing rental car insurance," says Joel Ohman, founder of CarInsuranceComparison.com.

But it's not so simple. "Does your credit card pay first, or does it only reimburse you for your deductible after your own insurance pays? The card probably won't cover liability claims, certain types of vehicles such as luxury cars, rentals beyond a certain number of days, or repair bills that aren't documented within a specified time," warns Tony Gurriero, vice president of claims at ACE Private Risk Services in Basking Ridge, N.J.

Your insurance might cover personal liability when you rent a car, but it may not cover you for loss of use, the period of time while it's being fixed. The rental agency may make you pay for that inconvenience. Also, if the damaged car is now worth less than what's owed, that's called diminution of value. You can be asked to pay the difference, points out Dan Weedin, author of "Eight Cool Rules for Better Insurance Buying."

You've spent hours ensuring you get the best deals on your trip; don't forget car rental insurance in your research. When the rental agent asks, have your answer ready.