Car Rental Insurance

Excecutive Summary about Rental Insurance By Simon Vella

Wherever in the world you are planning to hire a car, you can be certain that the cost of car rental insurance will be at least as much as the hire of the vehicle itself. The insurance is vital, of course, to indemnify the hirer not only against third party liabilities but other damage to the vehicle or its theft, resulting in the loss of its use. With the car rental insurance bill absorbing such a high proportion of the cost, therefore, it is good news to discover that those costs can be considerably reduced - by as much as a half - by arranging all the necessary insurance separately, in advance, whether the proposed rental will be in the UK or elsewhere in the world.

For example, whether the car hire is being arranged in the UK, Europe or North America, the quoted rate is likely to include a relatively large proportion to cover third party liabilities and accidental damage to the vehicle (generally termed a Collision Damage Waiver) and theft. In most parts of the world (with the exception of the United States), the Collision Damage Waiver will include an excess, which is the uninsured element of any accidental damage to the vehicle and which therefore remains the responsibility of the hirer him or herself.

A more cost-effective way of insuring this excess - and indeed the whole of the car rental insurance - however, can be secured by buying the cover entirely separately from the rental agreement. Specialist, independent insurance providers can arrange the whole of the cover required, either on a single-hire basis or on an annual basis, to cover multiple rental agreements throughout the year. Such cover tends to be considerably cheaper - up to 50% less - than that arranged by the rental company, yet can provide even more extensive protection than the rental company’s insurance.

Typical areas of car rental insurance cover, for example, include full Collision Damage Waiver (providing protection against loss, damage, theft or loss of use of the hire car); Supplemental Liability Insurance (extending third party liability limits up to a typical US$1 million - and certainly to be recommended if the rental agreement is for a car in the United States or Canada; cover for damage to the rental vehicle’s roof, underside, types and windows (usually excluded from the Collision Damage Waiver); compensation for accidents involving uninsured or hit-and-run third parties; cover for lost keys; and cover for any further excess on the hire car.

Car Rental Insurance - Hidden Fees Can Cost You

Excecutive Summary about Rental Insurance By John Marston

car rental insurance

When you travel you usually rent a car. And whenever you rent a car, it seems that you get hit with a lot of additional, hidden fees that can really run the cost of your car rental through the roof. The rental car companies make a lot of additional money selling you insurance coverage. The coverage is not a bad thing to have, especially if you don’t have a personal car, then you will need to purchase car rental insurance.

However, if you own a car and have it insured, use your credit card to pay for the vehicle rental, have home owner or renter insurance, you may not need any additional insurance coverage. How do you know what you need? The easiest way is to simply call your agent. Tell them you are taking a trip and does your insurance cover the rental car. Usually, the answer is yes.

There are exceptions. Some insurance companies will not cover rental car insurance if the vehicle is used for business purposes. Some policies will not cover a luxury vehicle, especially if you do not own a luxury vehicle yourself. Some policies will not cover an SUV. So you need to go over these things with your agent before you make your trip.

If you are traveling on business, check with your company. Some companies have policies in place that cover car rental insurance. Some companies require it, others do not. If you purchase the additional insurance and it is against the company policy, you may not be reimbursed for the insurance charges. So check with boss before you take off on that company trip. Some credit card companies will pay for the insurance. But check with your credit card company. Sometimes what they call coverage is only the deductible for your personal car insurance coverage. This is important information to know, but if your personal car policy is insufficient, it may not be adequate protection.

If your personal stuff is stolen from the vehicle, a lot of times you home owner policy may provide coverage. You do not want to lose your expensive laptop and not have coverage, so check before you leave home. Do not assume that having the car rental insurance will keep your personal insurance from finding out about your accident. They will, and they may raise your rates, even if they did not have to pay out against the claim.

Do not assume you are covered, until you ask and confirm the coverage. It is a bad time to find you do not have coverage after you have had an accident.

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