Possessing a car is expensive; service, maintenance, and the cost of spare parts keep mounting as the automobile ages. It is the reason why individuals refrain from purchasing a car. If you are concerned about the charge of possessing a vehicle, you have rental cars as your perfect solution. Nowadays, there are multiple alternatives to renting a car; it is inexpensive. You do not require thinking about maintenance while renting the car, just driving it and fuelling it up. Depending on your requirement, one may rent a car for one day or several months. Have you ever wondered how these rental cars come under insurance policies? The article throws light upon all these aspects of a rental car comprehensive insurance policy so that you can make the most of such a situation.
How do rental car insurance policies work?
Insurance for these automobiles is different from others. It works distinctly, as compared to personal car policies. Rental car insurance coverage is not as simple as regular automobile insurance. The range and benefits vary based on the location and the rental agency. Below are distinct categories of coverage’s provided within the rental car policies:
- CDW or collision damage waiver
As the name reveals, a CDW or collision damage waiver protects you against car damage. Note that the collision damage waiver covers bodywork damage but does not cover other aspects like tires, windshields, interior damage, engine issues, and battery. Damage to the automobile because of reckless driving or driving under the influence of alcohol is also not covered.
- Theft protection
If your automobile gets stolen, the theft protection coverage will ensure that you don’t have to pay money to the agency. Theft protection covers damage to the car in the burglary attempt.
- Third-party Insurance liability
A vehicle insurance policy covers damage to third-party life or property while driving the rented car. However, if it remains unverified that you broke the rules in such circumstances, the coverage may not apply, and you may not get cheapest car insurance quotes.
Reasons that make automobile rental insurance coverage best
When you rent a car, you bear the responsibility for the damage resulting to the vehicle; that is why getting insurance coverage is critical. Rental car policies cover you against theft damage and also damage to third-party property. Below are the distinct advantages of these insurance coverage’s.
- Super collision destruction waiver: collision damage waiver covers damage to the car exterior, while a super damage waiver covers additional parts of your vehicle. It provides you peace of mind even if you own a rental car.
- Personal accident insurance:If you or your co-passengers get injured in the rented car, the personal accident insurance will pay the medical expenses.
- Supplemental liability insurance: SLI or Supplemental liability insurance increases the amount paid by the 3rd party liability cover.
- Complete protection:As the name signifies, it’s an amalgamation of all the coverage mentioned above. It covers theft, damage, repair, and so on.
When purchasing insurance coverage for your rental car, you must know the maximum limit of the car collision the insurance company will cover. Know whether there are deductibles in the insurance policy or not. If the insurance company provides you with secondary or primary coverage, then you must know the pros and cons of each. In the entire episode, you must become an informed buyer.