As a general rule, whatever coverage you have under your personal auto policy would extend to renting a car, providing its usage is for pleasure, not business. Some credit card companies supply further protection, so check with yours to see if they offer insurance as an added benefit and what type of coverage they provide.

If you're not covered by your own auto insurance policy or a credit card, there are a number of insurance options available. One option to consider is the collision damage waiver. A CDW relieves you of financial responsibility if your rental car is damaged.

In New York and Illinois, insurance for collision damage is already included in the rental price and rental car companies are not permitted by law to charge extra for the CDW. New York and Illinois also restrict the liability of drivers to $100 and $200, respectively. Bear in mind, however, the CDW may be void if you cause an accident by speeding, driving on unpaved roads or driving while intoxicated.

There are other types of insurance available at the rental car counter as well. Personal accident insurance, for example, commonly costing about $3 extra per day, pays for injuries to you or your passengers. This is often unnecessary insurance since your health insurance policy or the personal injury protection of your auto insurance policy usually covers you.

Personal effects coverage, which costs an average of $1.25 per day, protects you against theft or any personal items in the car. But if you have homeowners or renters insurance, you're probably covered for off-premises theft, minus whatever deductible you have. You would also need to have receipts or other documented proof of ownership.

Additional liability insurance, which costs $8 to $9 per day, provides up to $1 million in coverage for the time that you rent the car. Some people feel more comfortable having this added protection. If you already have an auto/home umbrella policy, though, you're probably covered.

If you don't own a car, like many urban dwellers, and rent cars often, you might consider purchasing a non-owner policy, which costs $200 - $300 per year and provides added liability protection.

One other thing to keep in mind. Some rental car companies are now investigating a consumer's credit and driving history and can deny coverage. Check with the rental car company to find out its policy.