Rental car insurance differs significantly from personal car insurance, with benefits and coverage varying based on the rental company and location. It’s more complex than regular car insurance.
The kinds of coverages available in rental car insurance are as follows:
- Collision Damage Waiver (CDW): Covers vehicle bodywork damage, excluding battery, tires, windscreen, interior, engine, or gearbox damage. Does not cover damages from careless or intoxicated driving.
- Theft Defence: Protects against reimbursing rental company costs in case of theft, including damage during theft attempts.
- Third-Party Liability: Covers damages to third-party property or human life while driving a rented car, excluding violations of laws.
Significance of Rental Car Insurance Coverage:
Renting a car exposes you to liability for vehicle damage, making insurance coverage crucial. Rental car insurance protects against theft, damage to others’ property, and injuries to third parties. The advantages include:
Super Collision Damage Waiver (SCDW): This goes beyond bodywork damage covered by the CDC, including additional car parts. Offers peace of mind in case of severe rental car damage.
Personal Accident Insurance (PAI): This type of insurance will cover your medical costs if you or any other renter in the vehicle is hurt. *
Uninsured Motorist Protection (UMP): This insurance will pay for damages and injuries if you are in an accident and the other driver is not covered by insurance.
Supplemental Liability Insurance (SLI): The SLI will raise the upper limit of what third-party car insurance coverage will pay.
Roadside Assistance Coverage: The 24/7 spot assistance cover will be handy if the rented car breaks down. Assistance will be provided if the vehicle breaks down entirely, has a puncture, or runs out of fuel. *
Comprehensive Protection: As the name implies, this is the culmination of all the previously mentioned covers. It includes coverage for theft/damage, repair expenses, RSA fees, and other claim-related costs. Always make sure to renew car insurance on time.
Checklist For Purchasing Rental Car Insurance
What Is The Collision Loss Damage Insurance Maximum Limit?
Typically, it is determined by the rental company and the car’s value. But, you might be required to pay the excess if the rental company’s claim exceeds the insurance company’s coverage.
Is There A Deductible On Insurance For Rental Cars?
Yes, your vehicle rental insurance will have deductibles, and you may have to pay some of the cost to cover the damage. However, the deductibles won’t apply if you purchase Comprehensive Coverage or Zero Deductible coverage. *
Primary or Secondary Coverage in Rental Car Insurance?
The more common type is secondary coverage, covering theft and damage. With secondary coverage, the rental company claims car insurance with the insurance provider. For comprehensive insurance on a rental car, primary coverage is the preferred choice, often available through credit cards. You can use a car insurance premium calculator to calculate the costs of premium to be paid.
Does Rental Car Insurance Cover the Entire Vehicle?
No, the collision damage waiver doesn’t cover the entire car value. While Super Collision Damage Waiver covers specific parts beyond the bodywork, CDW only covers the vehicle’s bodywork.
* Standard T&C Apply
Insurance is the subject matter of solicitation. For more details on benefits, exclusions, limitations, terms, and conditions, please read the sales brochure/policy wording carefully before concluding a sale.