Many of you must have faced the question – ‘Do you need an insurance?’ when you are at a rental agency to rent a car. Answering this question is tough if you do not have a clear idea about rental car insurance. You might also be confused regarding whether your personal automobile insurance or the credit card insurance covers rental cars or not. A rental cover is important and you are taking a huge risk when you rent a car without any kind of insurance. If you rent a car without an insurance coverage and, it gets into an accident, then it may cause you huge financial losses. Have a look at www.telegraph.co.uk/travel/advice/car-hire-scandal-when-will-rental-companies-sort-their-act-out/ to know about the intensity of this issue.
This article is meant to clear all your confusions regarding rental car insurance. Read on to know all that you should do to prevent financial losses while renting a car!
Rental car insurances can be classified mainly into three categories as listed below.
Liability Cover – This type of insurance protects you when your rental car causes damage to any other vehicle or property.
Collision or Damage Waiver – This is actually an agreement between you and the rental company which makes you unaccountable if the car you rent gets damaged or stolen. This waiver includes various restrictions like you should not drive beyond certain areas, the driver should not be impaired, etc.
Personal Property Cover – This insurance is for your personal properties if they get damaged or stolen from a rental car.
Is your personal auto insurance sufficient?
In USA and Canada, the insurance that you have for your private vehicles covers the rental car as well in most cases, but you must confirm the same with your insurance companies. There may be restrictions on vehicles rented outside the country which you must check and confirm. You must note that the personal insurance might not cover the amount which rental agencies claim as their loss of fees charge. Moreover, you may also have to pay increased insurance premiums in future due to an exaggerated damage charge covered in case of an accident.
What about a credit card insurance?
Card networks like MasterCard, Discover, Visa, and American Express offer some kind of insurance coverage for rental cars, but generally, this type of insurance would serve only as a subsidiary coverage to your personal insurance or other policies. The policies vary greatly depending upon the card network and the state. Most of the networks do not provide coverage to highly expensive cars.
Some cards cover the loss of use charge claimed by rental agencies while some do not. A credit card insurance would be provided only if you make the complete rental car purchase using the card and do not avail any other insurance or waiver given by the rental company.
Other useful options
There are many good insurance programs provided by various companies. Some of them provide excellent coverage at reasonable costs. Most of them offer primary coverage so that you need not claim from any other insurance policy.
Whichever rental insurance option you are choosing, make sure that you analyze every point in detail before finalizing so as to avoid discrepancies in future!