If you’re going on vacation or getting your car serviced, you’ll almost certainly need to hire a car. However, many consumers are unaware that their motor insurance policy does not cover rentals by default. You’ll need rental car insurance to receive the coverage you require.
Rental car insurance protects drivers against financial liability while driving a rented car for a limited period. While your rental car provider will provide this coverage, you may already be covered under your existing insurance plans or by your credit card.
Different insurers can also provide equivalent coverage.
Not all rental car insurance policies are made equal, just like typical auto insurance. You might not know what you’re searching for if you’ve never acquired rental car insurance before. In this post, we’ll go through the many forms of insurance rental car insurance and help you figure out which one is best for you.
What are the types of Rental car insurance?
The insurance for a rental car is identical to that of a regular car. Based on your demands, you can choose the type of coverage and the degree of coverage you want. Rental car insurance, on the other hand, is not the same as vehicle insurance.
You should be aware of your options before purchasing rental car insurance. The following are the most prevalent types of rental car insurance:
Loss-and-damage waiver (LDW): This is a waiver, not a policy, known as collision damage waiver (CDW). It states that the rental company will not pursue you if the rental car is damaged or stolen. If you have collision and comprehensive car insurance, however, this may be covered under your policy.
Additional liability insurance: This insurance covers any damage you cause to other people’s vehicles or property. Even if you’re driving a rented car, your liability insurance may cover you.
Personal accident insurance: If you and any passengers are injured in an accident, personal accident protection pays for your medical bills. You may already be insured if your existing insurance includes personal injury protection or medical payments coverage.
Coverage for personal effects: This insurance covers any personal belongings that are stolen from your rental car.
Your homeowner’s or renter’s insurance policy may provide equivalent coverage in this scenario.
While rental car insurance comes in a variety of forms, it does not cover everything. You wouldn’t utilize this type of policy, for example, to get paid for the expense of renting a car while your regular vehicle is being repaired as part of a claim. In such a case, you would use rental car reimbursement coverage, which is another option provided in most standard auto insurance policies.
When should you take up rental car insurance?
It’s not always easy to tell when you’ll require automobile rental insurance. You might be tempted to avoid renting a car if you only need it for a few days. Some people’s own automobile insurance policies cover rental cars automatically. So, when is it necessary to have a separate rental car insurance policy?
If you don’t have auto insurance, at the very least, you should get liability and a damage waiver for a rental car. Because your non-owner auto insurance coverage only covers liability, you should add damage protection to your coverage. It is illegal to drive without auto insurance, and you could face significant legal and financial consequences.