If your rental car breaks down, you could be stuck with a huge repair bill. If your car is stolen or damaged, you may have to buy a new car to replace your rental car an expense that could destroy your financial future. This is where rental car insurance can really come in handy; it protects you in case something goes wrong with the rental car you’re driving.
RENTAL CAR INSURANCE: WHAT IS IT?
rental car insurance is not the same as rental liability insurance, which is car insurance that covers the cost of a rental car while our car is in the workshop.
Rental car insurance comes in many forms, some of which are technically unsafe.
WHAT DOES RENTAL CAR INSURANCE COVER?
Just like regular car insurance, rental car insurance is actually a collection of different coverages that come into effect under different circumstances. Because rental car insurance is a temporary product, it is structured a little differently than the car insurance you buy for your car.
TYPES OF INSURANCE
Depending on your situation, you can buy one, some or all of the types of rental car insurance available.
The collision insurance protects you if you drive your rental car into something or if something else impacts your vehicle (basically a traditional car accident).
When you arrive at the car rental company’s customer service department, you will almost certainly be offered a loss of damage waiver, or LDW, for your vehicle. This is not true collision coverage, but it is a promise that if your rental car is damaged or stolen, the car rental company will not ask you to pay for replacement or repair costs. While this type of insurance is not technically collision coverage, it will protect you in the event of damage from a collision.
While collision insurance covers the costs associated with damage to your rental car, liability insurance helps cover the costs associated with damage to other vehicles, property or people. For example, if you are involved in an accident while driving a rental vehicle, collision coverage will apply to the repair costs for the rental vehicle, and liability coverage will apply to the repair costs for the other vehicle.
What happens if you’re driving a rental car and your laptop is destroyed in an accident? In this case, you will definitely want to have personal property insurance. This insurance covers the cost of replacing personal property damaged in an accident or stolen from your rental car.
If you are injured in an accident involving a rental car, personal accident insurance can help cover your medical expenses. Most personal accident insurance also covers passengers travelling with you.
DO I HAVE TO HAVE RENTAL CAR INSURANCE?
It is absolutely necessary to have some form of rental car insurance for the same reason you want to have your own car insurance. if something goes wrong with your vehicle, the cost of repairs could bankrupt you, or at least put you in serious financial trouble. However, this doesn’t mean that you need all types of rental car insurance.
HOW CAN I GET RENTAL CAR INSURANCE?
A car rental company is not the only (or even the best) source of rental car insurance. In fact, you may already have rental car insurance and not even realize it.
RENTAL CAR INSURANCE: TYPES OF PROVIDERS
Most people buy rental car insurance from one of three places: a car rental company, a credit card company or a private insurance company. In some cases, it is also a good idea to look for a private provider, or a company that specializes in providing car rental services.