Read this article to learn some tips on car rental insurance and ways to get it at the most affordable price.
The experience of many travelers shows that car trips are more convenient since you do not need to go through a tedious control at the airport, wait for transfers or try to sync with the schedule of various types of public transport.
You travel both in your car or rent a vehicle. But to make your trip really trouble-free, do not forget to buy an insurance policy, especially for a rental car. Let us find out what policy you may need and where to buy without paying a fortune.
Who Sells Car Rental Insurance?
No rental agency will allow you to drive off in a car without insurance. It is obvious you should protect your hire car from damage and theft and should have at least a policy with basic coverage. Where to buy it?
- You can get different types of auto insurance right at the rental counter, including collision, personal property, and liability coverage. In most cases, this service is already included in the daily rate for rent.
- You can get standalone car hire excess insurance through a third party. Sometimes, it can be the most affordable policy if you analyze the offers of several insurers in advance. I saved heaps of money by using an annual Europe car hire insurance policy with CarInSuRent.com, which cost me just $94.90.
- If you have travel insurance, it may also include rental car coverage.
Before you buy car hire insurance, take time to recheck if, by chance, you already have coverage through other channels, for example, your credit card or personal car insurance.
In this case, it may be useless to pay twice.
Best Car Rental Insurance
Once you drive in a rental car abroad, you will most probably need these basic policy types:
- Collision Damage Waiver (CDW) or Loss Damage Waiver (LDW)). It is protection against damage to a rental car.
- Third-Party Liability Insurance (TPL). It covers third-party autos from damages caused through your fault.
- Theft Protection (TP) or Theft Insurance (TI). It is insurance against theft.
Basic policies are usually limited by a deductible. It is a certain fixed amount that the insurance company does not cover. That is, in case of damage to the car, the insurance covers the amount already in excess of the deductible.
In this case, the cost of the deductible is compensated from the client’s own funds. The amount of the deductible depends on the country of rent, the rental company, and the class of the car.
What Happens If You Damage a Rental Car Without Insurance?
Driving a rental car without insurance is not prohibited but is not recommended. But if you have caused some damage that you have no coverage for, be ready to pay for it in full.
Such a situation is highly undesirable, since prices in a foreign country may turn out to be sky-high even for seemingly insignificant damage.
Do I Need to Decline the Rental Company’s Insurance to Use 3rd Party Insurance?
Usually, rental firms include insurance in a daily rent price. And they always urge you to buy it as a part of the deal. But you should not necessarily agree to it. First of all, you may already have partial coverage through other channels, such as credit cards or personal car insurance.
And secondly, you are absolutely free to buy car hire insurance from companies that sell standalone policies for rental cars, for example – CarInsuRent.
In many cases, you may save well as basic policies from rental agencies do not include such important things as keys, tires, windscreens, and more.
Stand-alone Insurance Policies for Your Rental Car
A standalone policy means that you can buy it separately. You can arrange this policy ahead of your trip. Independent insurers may offer much more attractive prices, especially when it comes to long-term rent.
Moreover, you can be offered a package that also includes car rental excess insurance that will considerably reduce your financial obligations in case of an accident or other damage to a rental car.
Summing up, check what policy a rental company will offer you well in advance. It will allow you to weigh the pros and cons and choose the most optimal insurance option at an affordable price.
It is vital to read attentively what precisely this or that policy includes as even seemingly the same variants can have many differences. Thorough preparation will devoid you of unnecessary worries and make your trip even more enjoyable.
