Rental automobile insurance is a type of insurance that provides coverage for damages or losses incurred while driving a rental car. Here are some basics about rental automobile insurance:
- Types of rental automobile insurance: There are generally two types of rental automobile insurance: collision damage waiver (CDW) and liability insurance.
- Collision Damage Waiver (CDW): CDW covers damage to the rental car in the event of an accident or theft. It also covers the loss of use of the vehicle while it is being repaired. However, CDW does not cover damages to other vehicles, property, or injuries to other people.
- Liability Insurance: Liability insurance covers damages or injuries caused by the rental car to other vehicles, property, or other people. It is important to note that liability insurance may be mandatory in some states.
- Personal Accident Insurance: This insurance covers medical expenses for you and your passengers in case of an accident.
- Personal Effects Coverage: This insurance covers loss or damage to personal belongings in the rental car.
- Costs: Rental automobile insurance costs can vary depending on the type of coverage and the rental car company. Some credit cards also offer rental automobile insurance, so it is worth checking if your credit card provides this benefit.
- Exclusions: There may be certain exclusions in the rental automobile insurance policy, such as driving under the influence of drugs or alcohol, off-road driving, or reckless driving.
It is important to carefully read the rental automobile insurance policy and understand the coverage and limitations before renting a car.
Here are some additional points to consider when it comes to rental automobile insurance:
- Rental car companies may offer additional insurance options: In addition to CDW and liability insurance, rental car companies may offer additional insurance options such as personal accident insurance, personal effects coverage, and supplemental liability insurance. It is important to carefully consider these options before making a decision.
- Credit card rental car insurance: Some credit cards offer rental car insurance as a benefit to cardholders. This coverage may be secondary to your personal auto insurance policy, meaning it will only kick in after your personal policy has been exhausted. However, some credit card companies may offer primary coverage. It is important to read the terms and conditions of your credit card rental car insurance to understand the coverage and limitations.
- Check your personal auto insurance policy. Your personal auto insurance policy may provide coverage for rental cars. However, this coverage may only apply to certain types of vehicles and may have limitations. It is important to review your policy and speak with your insurance agent to understand what is covered.
- International rentals: Rental automobile insurance policies may vary depending on the country you are renting the car in. It is important to research the insurance requirements and laws in the country you will be renting the car to ensure you have adequate coverage.
- Deductibles: Rental automobile insurance policies may have deductibles, which are the amounts you will be responsible for paying out of pocket in the event of a claim. It is important to understand the deductible amount and any other costs associated with the policy.
In summary, when renting a car, it is important to understand the different types of rental automobile insurance available, review your personal auto insurance policy and credit card benefits, and carefully read the rental car company’s insurance policy to make an informed decision about the coverage you need.
