Insurance

Do I need car rental insurance?

The short response is: Yeah! You certainly need it! Knowing what kind of protection you need, where to buy it and what multiple plans cover is the tricky part.

There are several different forms of insurance policies for rental cars, determining which one to choose depends on the amount of compensation you wish to take; some only cover the car you rent, some also cover injury or harm to you or yourself and your passengers.

The car rental company you choose will clearly state in their terms and conditions which form of insurance is compulsory in compliance with their own policies and local legislation. Bear in mind that car rental companies prefer to recommend additional coverage, so determining what's needed and what's extra in advance will help you choose what's best for you.

If you're searching for budget-friendly choices, make sure you review the insurance coverage that you already have to potentially save money. For example, take advantage of your own auto insurance, personal insurance or car rental insurance benefits provided with your credit card, and check if any of these are consistent with the specifications of the car rental company your have chosen.

Where can I get rental car insurance?

Different companies are offering car rental insurance. Your options shall include the following:

• The car rental company's insurance

• An independent car rental insurance broker

• Travel insurance

• Your car insurance

• Your credit card

All of these options have different price, coverage and convenience ranges. For example, while it might be cheaper to get car rental insurance directly at the counter when you arrive to pick up your vehicle, it is unlikely to be the most budget-friendly choice.

Independent car rental insurance is an alternative that can be as convenient without high prices. Insurance companies evaluated the criteria of car rental agencies and provided compensation services for the vast majority of car rental scenarios.

If you do have car insurance, it's worth looking at what you're already paying for in your contract and comparing it to the car rental agency's criteria and coverage guidelines. Chances are that some of the facilities you're already paying for might also refer to car rentals. Same goes with your travel insurance - It can cover some of the cases required by the car rental company.

Insurance policy appears to have a restricted location and situation. Check the regions where your coverage is applicable and what particular conditions are or are not covered. Insurance that you have will only protect you if you drive in your country of residence; also most insurance providers would not cover incidents where the driver drinks alcohol above the local limit.

What does car rental insurance cover?

Car rental insurance usually covers three specific aspects - losses, fraud, and third party liability. Damage to the rental car involves damage to the bodywork, much of which is the exterior of the car, including bumpers, fenders, doors, etc. It doesn't include the windows, the wheels, or the interior. The most you will have to pay for the damages is considered the deduction. Theft cover means that you won't have to pay for a new car if the rental car is stolen or destroyed if anyone wants to steal it. Again the most you'd have to pay for this is the deductible of the fraud insurance program. Responsibility to a third party is whether youharm someone or destroy something in your rental car. Usually, there is a maximum amount that this scheme will pay to a third party.

These are the three basic forms of coverage, but there are a variety of items that additional policies can cover. What happens if you get injured in your rental car? What's going to happen if your stuff is stolen in a rental car? What happens if you get into an accident with someone who isn't self-insured? Well there are regulations that also cover each of these cases.

What type of car rental insurance should I get?

Now that we know what car rental insurance will cover, it's important to know what form of insurance applies to each type of insurance coverage. There are a lot of complicated acronyms, situations, and rules that vary from city to city when it comes to car rental insurance options.

There are essentially six forms of car rental insurance coverage, depending on their purpose. You will find insurance to cover the rental car, other people and their belongings, personal injuries and roadside assistance. Here's a quick rundown of your options:

Collision Damage Waiver (CDW)

Collision Damage Waiver, also shortened to CDW, is an alternative insurane policy that offers compansation in the event that your car is damaged during the car rental period. In several countries, the CDW is packed along with the Loss Damage Waiver (LDW), which also offers theft insurance in case your rental car is stolen during the rental period. However these plans are also bought seperately in the USA and Canada.

Personal Accident Insurance (PAI)

Personel insurance refers to the driver or the holder of the policy. It may cover costs in the event of an accident, such as transport by ambulance and related costs resulting from medical assistance. In the same way, the property of the driver could be protected by the Personal Effects insurance in the event of theft or loss.

Loss Damage Waiver (LDW)

A Loss Damage Waiver, also shortened to LDW, is an optional insurance policy that offers compensation in case your car is damaged or stolen during the car rental period.

Supplemental Liability Protection (SLP)

Liability Insurance may have several terms, Extended Protection (EP), Supplemental Liability Insurance (SLI), or Third Party Liability (TPL); it is an optional insurance policy that can be added to compensate you in the event of damage to other people's property as well as medical costs for other people's injuries in an accident that you are legally responsible for. In several countries outside the USA and Canada, this "third party" insurance is expected to be offered by the car rental company. Usually this is not included in the U.S., but if you are a car owner, you may also have liability insurance coverage with your personal auto insurance.

Roadside Assistance

Accidents occur... flat tires, mechanical or electrical malfunctions, etc. If you're not sure how to get your rental car back on the road, you may want to look at getting this kind of insurance.

Personal Effects Coverage (PEC)

This is for theft of personal items in a rental car up to a particular amount.

At the end of the day "how much car rental insurance is" depends on a lot of variables that come down to your esired degree of security. Insurance plans generally cover costs up to a certain amount and the premium is either covered by the insurance provider on the spot or refunded to the policy holder after the investigation.

Reading the terms and conditions of your car rental agreement carefully and comparing your insurance plans is the best way to save time and money so that you can enjoy a stress-free trip feeling secure and protected.