Whenever you go into a rental agency or hit one of those booths in an airport, there are always questions about auto insurance. Those rental agents all have a menu from which to sell their different policies. But before you commit yourself to anything, there are a few things to get straight.
Most rental companies do not put the full rental agreement or the insurance terms up on their websites. They are kept at the points of sale if you ask to see them. Frankly, it is always a good idea to read these documents. Pay particular attention to the limitations and exclusions. |
|
Tips on insurance for rental vehicles?
The first question is whether you need to buy any additional insurance. In many cases, the comprehensive liability and collision damage terms in the auto policy for your own car will apply the same cover limits to any other car you drive subject to the same deductibles.
Your home policy may cover you against theft of personal property from a rental car. Check your own medical plan to see what cover you have for personal injuries suffered in a traffic accident.
You may also find that there is an element of car insurance if you pay for the rental using a credit card. Go to your credit card carrier’s website and read carefully through their terms and conditions. Be alert. Some card carriers only offer comprehensive and collision cover, leaving you responsible for personal injury and property damage claims.
Some limit the number of consecutive days, the total number of days per year covered, or only give cover if you rent from particular rental companies. Others only provide cover for particular makes and models of cars, or only reimburse the amount of the deductible you have to pay on your regular auto policy. Although some advertise this element, you may have to specifically enrol in a program before you are actually eligible for the cover.
The insurance offered by the rental companies tends to be very basic. The first is not an insurance policy at all. It is called a Loss Damage Waiver by which the renter agrees not to hold you personally liable for damage to the car itself. The real insurance element is usually just a third party liability policy to protect you against claims from anyone else who may be injured in any accident.
So, before you rent, check out exactly what is on offer from the particular rental company and weigh up how much cover you have from your regular policies. Then only buy the cover you need to fill in the gaps.
Information from InsureMe.com
| 
