Renting a vehicle can be a very overwhelming. They ask a lot of questions and you only have a few minutes to make a choice. Knowing the typical options and what cover will help a lot. Below are some quick overviews of those typical options and which ones I normally choose. Having a Southwest card can help save you money. More information after we go through the options.

Item 1: Before you go on vacation have a conversation with your auto insurance company and know their policy on rentals. Usually whatever coverage you have on your personal vehicle is what carries over to the rental. If you don't have full coverage on your personal then you won't have full coverage on the rental. If you get in accident and the rental needs work or is totalled - YOU ARE RESPONIBLE FOR COVERING THE DAMAGE.

Item 2: Basic Insurance - This add on option is designed to cover the gap left by your personal auto insurance deductables. If you choose this option and there is damage to the vehicle the basic insurance option will cover the cost up to your deductables. They will say something like, "With this option if you get in an accident you owe us nothing. You can just walk away". That is not totally true - read the next item.

Item 3: Collision/loss damage waiver (also known as an LDW or CDW). If the rented vehicle is totally covered after an accident but it takes a few days (or weeks) to get the car repaired the rental place will lose money because they can't rent the vehicle during that time. Guess who gets to pay for the loss of revenue, look in the mirror. So, they offer this option to cover the loss. This usually runs $20+ per day.

Item 4: If you don't have any personal car insurance (which might be illegal depending on which state you live in) then you will need to take out the full coverage option that is offered by the rental company. Keep in mind that it doesn't include Item 3.

Item 5: Fuel Option 1. They will offer an option that will fill the tank from whatever level you bring it back at. While on the surface this sounds like a good idea until you dig into it. They will charge some outragous amount per gallon - like $11+ per gallon. This is a horrible option unless you know you are only going to use about 2 gallons of gas during the entire rental period.

Item 6: Fuel Option 2. This offer differs from the first option because this time the cost per gallon will be very reasonable. No matter how much gas is left in the tank when you return the car they will charge you the size of the tank multiplied by the reasonable rate. Now, if you know you are going to use most of the gas this is not a bad option. Or, if you are in city that you don't know where any gas stations are this is also a good option.

Item 7: Fuel Option 3: Bring the car back with a full tank and that's the end of it. You won't owe anything extra. If you pick this option and return the car with less than a full tank they will default your selection to Item 5 and most of them will charge an additional fee just because they can.

Southwest Credit Card - Help is on the way!
If you rent a car in the U.S.A and you have full coverage personal auto insurance then don't select any of the options except maybe one of the fuel options. If you book the rental and pay for the rental with your Southwest Credit Card, they become your secondary insurance and they cover the loss waiver and the gap below your deductables. Always be sure to review your personal insurance and your credit card policies before traveling. Below is a what the Southwest Credit Card policy says:

Rapid Reward Points:
If you book a car rental from Southwest.com you can earn bonus points. Usually you get 600 points just by booking. Sometimes they offer 1,200 points. If you charge it to your Southwest Credit Card you will get double the points for the car rental price. Overall you could earn around 800+ points for renting a car.