Ever found yourself at a rental car counter, staring into space, with half a mind to say yes or no to whatever offer made at them? Well, you’re not alone. The rental guys throw terms at you, and frankly, you have no idea what you really need. It could probably save you some money today saying that you do not want any of that. But what if something goes wrong down in the rental car?
Rental car insurance matters: Things happen. The more accidents you have to cover, the more expensive it gets on your behalf in terms of damage or injury. This article is meant for your assistance in making sense of rental car insurance. Here you will learn about your alternatives so that you can make intelligent decisions.
Your Current Insurance Coverage
Knowing what insurance is applicable to you is the first step in renting a car. You may find that you are better covered than you thought. Let’s look at your associated policies.
Private Auto Rental Insurance
Congratulations! Your car insurance should cover rentals as well! Liability covers damage to others. Collision protects the rental car for any damages. And comprehensive covers other losses such as theft or weather damage.
Of course, there are your deductibles. You’re still liable for that amount; only then will the insurance pay out. In addition, your policy might limit the amount it does cover. For example, if you rent a prime car, your policy might cover an inexpensive repair, and you will be responsible for the rest.
Credit Card Protection
Credit cards are ideal for car rental insurance. Great perk to have. Some offer primary coverage, which means they pay out first. Secondary coverage means it kicks in only after your insurance.
Usually, to activate the benefit, you have to pay for the rental with that credit card. There are sometimes exclusions, like specialty car rentals. Look for the terms and conditions of your card to get all the specifics.
Understanding Rental Car Insurance Options
Rental firms present an assortment of insurances. Knowing what they are can save you stress later on. Let’s break them down.
Loss Damage Waiver (LDW) / Collision Damage Waiver (CDW)
LDW/CDW is not insurance per se, yet behaves like one. It basically means that the car rental company will not sue you for damages to the vehicle. If the car rental is far too expensive, so are these LDWs. But it gives you peace of mind.
Another benefit: no deductible. Nothing totally out of pocket from your end. Just know everything that is excluded. Some, for instance, may not cover reckless driving.
Liability Insurance
Extremely important one. Liability is your insurance for destruction you will cause to other people or their property. Rental car companies tend to offer it, of course, with very low limits.
In the event of a serious accident, the minimum coverage may leave one liable for the balance. So know about your exposure.
Personal Accident Insurance (PAI)/Personal Effects Coverage (PEC)
PAI takes care of medical fees in case of injury following an accident. PEC compensates for your stuff if it gets stolen while in the car. Sounds good? But do you really need it?
If you have health insurance, then PAI may essentially be double coverage. Similarly, your homeowners’ insurance may be covering your stolen belongings. Verify that you are not duplicating a claim before purchasing it.
Factors to Consider When Choosing Rental Car Insurance
Choosing the right insurance is really personal on one select trip. Now consider that you will ask yourself a couple of questions. These points should help a lot.
Destination and Driving Conditions
Where exactly are you going? And how are the roads going to be? Weather matters, too. They can raise the risk.
Driving in busy city traffic is different from one driving along a quiet countryside road. If you are in a place that is prone to severe weather, consider that extra protection.
Rental Time and Type of Vehicle
How long are you going to rent this car? More risk for something to go wrong means longer rental time. What type of car is it?
Renting a fancy car could mean costing an arm and leg for repairs. This, in turn, increases risk. More coverage might be important for you.
Deductible and Coverage Limits
So what is the deductible? What’s the payout? These are important numbers to check.
A low deductible is nice, but generally, it comes at a higher premium. Compare what you’d keep versus the costs paid overall.
Alternative Rental Car Insurance Options
You don’t have to buy insurance from the counter of the rental agency, other ways can save. Third-party providers are worth considering.
Third-Party Rental Car Insurance
These companies specialize in offering rental car insurance. Often they can deliver better coverage but at lower prices. It’s worth a look.
Just be aware of the downsides. Filing a claim might be more complex than going through the rental company. Do some research.
Travel Insurance
Travel insurances can sometimes comprise rental car coverage. These include coverage for trip cancellation and medical emergencies. Very good plan.
As said, the policies come along with limitations. Go through the fine print so that what it covers and does not cover will not be assumed.
Choosing Wisely: A Stepwise Guide
Taking some time to think? Here are simple steps toward assisting you along. Do these to make sure you are ready.
Assess Existing Coverage
Before you rent, call your insurance company. Check your credit card benefits, too. It’s the time to do your research.
Knowing what you have already is important. Save yourself from spending on things that may not be needed. Save cash.
Scrutinize Options
Read all the terms and conditions carefully. Consider different alternatives and understand the coverage you need for peace of mind.
Conclusions
Rental car insurance is another source of confusion but very useful to understand those options. Know what you have, compare company features and prices, and read the fine print.
