Let’s deal with a situation where you’ve just arrived to a place for business or vacational purposes. Keeping in mind the level of time waste due to waiting for taxis, you decide to go to the rental car counter where you’re asked about the rental car insurance as well.
Unknown to the benefits of the insurance, you might say no. Well, this is the mistake we’re trying to dissuade you from.
WHY DO YOU NEED RENTAL CAR INSURANCE?
To be true, one may need rental insurance. Especially when the given person has met an accident and needs to pay for the car and medical expenses.
TYPES OF RENTAL CAR INSURANCE?
There’re four types of rental insurance which are offered by car rental agencies:
- Collision damage waiver: Purchasing this insurance would give you the privilege of not paying any amount if the vehicle is damaged or stolen.
- Personal accident insurance: With this insurance, you don’t have to pay for the injuries or death of the driver or any passengers.
- Personal effects coverage: This insurance will reimburse you in case your personal items get stolen while renting the car.
- Supplemental liability protection: Acquiring this insurance will save you from paying any expense to others if in case the rental car meets an accident.
INSURANCES INCLUDED IN THE CAR HIRE PACKAGE
There’re three types of insurances that are included in the car hire package. These are:
Collision damage waiver:
It protects you from paying out the full amount for any damage to your hire car if case of a mishappening.
Theft protection:
It protects you from paying the full value of the car if in case it gets stolen.
Third party liability insurance:
It’s a legal requirement, therefore you ‘ll always find it in the book. It’ll provide coverage if in case, you injure anyone or damage someone else’s property following an incident.
INSURANCES BENEFITS FROM OTHER INSURANCES
We think that you may be knowing that your personal auto insurance would fail to cover for your rental car as it would do for your won car.
For such, you need to buy liability insurance which may provide you coverage for collision, comprehensive and medical, etc. However, there are some insurers which won’t provide coverage if you rent a car in a foreign country or use the rented car for commercial purposes.
Credit cards too offer coverage but it varies in degree. It’s treated as secondary as it comes in role when your auto insurance leaves off and covers:
- Collision.
- Damage.
- Theft.
However, if you want the coverage to apply then, you need to decline the rental company’s collision damage waiver and pay for the coverage in full through the card so that it could provide protection. Also, remain in contact with the card company to know exactly what is covered or not.
With the help of health and life insurance, you can protect yourself in case of an accident by not paying for your own costs.
A FEW THINGS TO KEEP IN MIND WHILE BUYING RENTAL CAR INSURANCE
Consider getting insurance from a standalone insurance provider
Although you get a little insurance when you rent a car but that insurance isn’t enough. Given the exceptions in the policy, the insurance wouldn’t provide you any protection. This is where you need to tread carefully because the car rental companies would definitely try to sell you insurance which could cost you $40.
Therefore, we advise you to purchase insurance from a standalone insurance provider which can help you to save 40% of your money.
Double check everything that your car rental insurance covers you for
While you’re purchasing the insurance, notice the things that are covered and excluded in the insurance policy. The things that are mainly excluded from the policy are damaged things such as:
- Engine.
- Mirrors.
- Roof.
- Tyre.
- Undercarriage.
- Wheels.
- Windows.
Other thing that is occasionally excluded from the rental car insurance is key coverage and lockout. If in case you lose your car keys or are locked out of the car. the insurance policy won’t cover you. In addition to it, you may also not get coverage if your car breaks down or you meet an accident.
Check for roadside assistance in your insurance policy
Rental insurance doesn’t cover roadside assistance. Therefore, it’s important to keep in mind that your purchased policy does. According to many rental companies, you’ve to purchase a separate add-on policy for roadside assistance which could cost up to $A7 per day which means in a week, you are liable to pay $329 ($280+$49) for insurance only.
Nevertheless, if you choose standalone insurance provider, you can easily get an insurance that covers for everything, often more than the premium excess.
Be prepared for a credit card deposit
If in case you purchase rental car insurance from a standalone provider, then you’ve a substantial amount as security deposit which will be refunded back when the car is returned. This is done to ensure that they’re paid if their customer meets with an accident or damage the rental car. Usually to go with the deposit, they require a credit card wherein they won’t deduct any money unless there’s a mishappening. Therefore, always make sure that your credit card has enough limit that not only covers the deposit but other expenses as well.
Consider booking with free cancellation
Nobody knows the future and therefore it’s important to know that you’ve the liberty to cancel your booking or reschedule it, as seem necessary. It could be the car rental itself or the insurance you’ve purchased for it.
Always read all the terms and conditions carefully before submitting any document as such clauses are usually hidden by fine print.
Check if the insurance provider is regulated
Make sure that the insurance provider is regulated by reading the Policy wording or the Product disclosure statement. Furthermore, duly note that the insurance you’re willing to purchase is valid for the following:
- Type of vehicle you’re renting.
- Your country of travel, etc.
Doing such will help you not to get manipulated by the rental car sales person.
Keep the company’s emergency number on hand
Always have the company’s emergency number saved in your mobile. It would help you if in case you get stranded in the middle of the road with a broken down car and don’t know what to do or how to reach for help.
Also, do make sure that the number is valid and in working position.
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