Do you want rental car insurance? – coloured idiot
Motor insurance protects against financial damage caused by vehicle damage, accidents or theft. Rental car insurance offers the same protection in a rented vehicle. Read on to learn more about how rental car insurance works and why it's necessary.
What is rental car insurance?
Rental car insurance is a type of insurance coverage. It protects against financial losses incurred while driving a rented vehicle. A driver who rents a car can purchase car rental insurance to cover:
- Damage to the rented vehicle after a collision
- Compensation for damage to other people or property caused by an accident with the rental car
- Injuries to the insured person due to an accident in a rental car
- Theft of a rented vehicle
- Theft of personal items belonging to the policyholder from the rental vehicle
Not all rental car insurance protects against all of this damage. As with traditional auto insurance, motorists have the option of choosing which protection they want to pay for.
Does your car insurance cover rental cars?
Does my car insurance cover rental cars? This is a common question.
The good news is that insurance coverage usually extends to rental cars. Driver liability insurance and other types of insurance remain in effect even if the driver is a rental vehicle and not a private vehicle.
There are a few exceptions, however. Auto insurers can exclude coverage for rental vehicles rented outside of the United States. And motorists who rent a vehicle that is much more expensive than they own may find that some losses are beyond insurance limits. A driver with $ 25,000 collision insurance who rents a Ferrari is not fully insured.
Types of insurance for rental cars
There are many different types of rental car insurance. Common examples of rental car insurance are the following.
Supplementary liability protection
Additional liability protection is a type of rental car liability insurance. It protects the policyholder from claims by other drivers. If a driver of a rented vehicle causes an accident that injures others or damages their property, additional liability insurance pays. It covers the victim's losses up to the policy limits.
Disclaimer of liability in the event of collision damage
A fully comprehensive insurance (CDW) is not a traditional form of insurance. Instead, it's unique to rental car insurance.
When a renter pays for an optional CDW, the rental company agrees not to attempt to collect money from the renter in order to pay for vehicle damage in the event of an accident.
Cover for personal items
Personal effects insurance is a type of rental car insurance that protects the policyholder's property. It offers cover for items in the rental vehicle up to the policy limits. For example, a driver whose laptop is stolen from a rental car could make a claim for damages.
Other immediate family members and passengers traveling with the insured driver are also protected.
Personal accident insurance
Accident insurance covers the policyholder's medical costs. It can also cover medical expenses for everyone else in the rental car at the time of an accident. A driver who drives a rental car and was injured in an accident has the ambulance ride and medical bills covered by this policy.
Do you need rental car insurance?
In many cases, a driver's standard car insurance covers everything that rental car insurance would offer. For example:
- Comprehensive and collision protection could make fully comprehensive insurance superfluous
- Liability insurance for personal injury and property damage could make additional liability insurance superfluous
- Home contents or tenant insurance could cover personal items
- Personal Injury Protection (PIP) or health insurance coverage could make accident insurance superfluous
However, drivers should be aware that their own coverage may not be as comprehensive as that of the rental car in all situations. Individual policies may have lower limits or higher deductibles. Or, under certain circumstances, car insurance can exclude cover altogether. Cars that are rented abroad are usually excluded.
When answering the question "Should I take out rental car insurance?" It is important to read the policy documents carefully to understand what coverage is in effect.
Does your credit card cover rental insurance?
In many cases, credit card rental insurance can provide some protection to motorists who rent vehicles.
However, this rental car insurance offered by credit card companies is not always as comprehensive as cardholders expect. It often only replaces fully comprehensive insurance. As a rule, it does not offer insurance cover for personal injury or liability. And it likely doesn't cover personal property or medical care costs the cardholder would incur in the event of an accident.
Drivers ask themselves: "Should I insure my rental car?" You need to be aware of the limitations of car insurance for credit card rentals. This means that you read the cardholder terms carefully.
Rental car insurance costs
"Does my car insurance cover rental cars?" is a complicated question. Another important question for motorists considering taking out rental car insurance is: How much does rental car insurance cost?
The answer depends on many factors. They include the scope of the rental car insurance taken out and the location where the policy was taken out. In general, however:
- Fully comprehensive insurance typically costs between $ 20 and $ 30 when purchased from the car rental company, but can be as low as $ 10 when purchased from a third party.
- Additional liability insurance typically costs between $ 8 and $ 12 per day
- Personal accident insurance and personal property coverage are typically around $ 2 to $ 3 per policy per day.
Which companies offer cheap rental car insurance?
For many people, standard auto insurance includes rental car insurance at no additional cost. Motorists can research the best auto insurance options to find an affordable policy that offers this feature.
It is also possible to take out independent rental car insurance. Policies can be obtained from a variety of companies including:
Everyone offers affordable protection. However, the specific costs and coverage vary depending on the provider. For drivers, it is best to obtain an individual quote for insurance coverage for rental cars.
Alternatives to rental car insurance at the counter
It is possible to take out rental car insurance at the counter when renting a vehicle. However, other rental car insurance options may be cheaper or more comprehensive. Other options are:
- Take out car insurance with good rental car insurance. Drivers can compare the best car insurance providers. See which policies have affordable premiums and comprehensive coverage for rental vehicles.
- Rental car insurance credit card. While credit card policies are often not comprehensive, they can reduce the insurance coverage motorists have to purchase at the counter.
- Third party rental car insurance. Companies like Insure My Rental Car and Allianz can in many cases offer cheaper insurance coverage.