A Full Guide on Rental Car Insurance

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Rental Car Insurance

Here, we will discuss about the insurance of the rented card. Whether to purchase rented car insurance or not? Some important points to be considered while opting for a Rental Car Insurance, etc.
As most of us own up a vehicle and if you own a vehicle then you might be having vehicle insurance too with you, as in case you own a car than you will be buying up car insurance for your car. Likewise, while having a rented car you should buy rental car insurance.

Things to Know When Buying Rental Car Insurance:

You need to keep following things in mind when buying an insurance rental car:

  • Size of the car: The size of the car, i.e. whether it is bid, small, mid-range or large eventually makes an impact on the car insurance of the rental car. So, you need to keep the size of the rental car in mind while buying cheap car insurance for yourself.
  • Compare different prices and buy: You need to compare different policies as well as prices of car insurance as well as for the rental car insurance and then opt and choose the most desirable option.
  • Driving record: A persons driving record largely impacts the vehicle insurance policy. So, one should drive safely and within the standards or the insurance policy to be considered liable for vehicle insurance. Some of the norms on which the insurance company can discard your insurance application are depicted as follows:
    • Irresponsible or wild driving
    • Seat belt law desecrations
    • Accidents, regardless of the fault
    • Leaving the sight of an accident
    • Opinions for Driving While Intoxicated (DWI) or Driving Under the Influence (DUI)
    • Driving with an invalid, or suspended, or canceled license

So, in case of the rental car to these rules do apply.

  • Charges in the case of Out-of-State: Some insurance companies do not cover in their policy out of state or international travel. So, you need to be careful about whether you are offered and covered by the insurance if you travel outside your geographical area.
  • Taxes: While opting for a rental car, the company may charge upon some state, service tax rates to the car. Moreover, you need to see that other charges such as vehicle licensing charges, etc are levied by the company while buying a rental car.
  • Coverage offered: You need to see that for what and how far your coverage extends. As there will be something where the policy may not provide cover for your rental car. However, you may already have a cover for yourself in your vehicle insurance or your home insurance. Where you need to see that if your rental car is covered or not. You can read all the policies term for that, or call your agent in case of any query. Or rental car coverage can easily be purchased separately for some price.
  • Drop-Off Fees: The drop off fees on a rental car is incurred in case you drop your car at a separate location from the pickup location, where you will be liable to pay the drop off fees.

When is rental insurance coverage a good option to consider or should you get rental car insurance?

Other than just buying a car rental insurance, you should first see to it, whether your investment is worth it or not in the rental car insurance. So, you should see to it that:

  • You do not own car insurance: If you do not own car insurance, then buying rental car insurance will be a good option to consider or opt for.
  • If you need to drive a car overseas: In case you drive internationally or outside the country then you need to check with your policy term and condition, otherwise, you need to buy yourself rental car insurance. Most policies do not provide coverage for overseas rental car insurance.

Do you need rental car insurance?

You need to analyze and make a decision about whether you really need rental car insurance or not. As you already have a car insurance or auto insurance policy. So, you need to check your existing policy for the included terms and conditions of the coverage as well as check if your rental car will be covered or not?

Here, buying a rental insurance policy will cost you around $15 to $30 per day which you will be paying over and above the car rent.

Does my car insurance cover rental cars?

Well, in case you already have car insurance or vehicle insurance or home insurance then you need to check with your insurance policy whether rental cars are covered or not in your existing insurance policy.

You can check your existing policy if they have comprehensive and collision coverage for your car. And if not, then there is a possibility that your rental care may not be covered in your existing policy.

And the other thing which you need to note down, in the policy is that you should be covered or your care should be covered for business purposes other than personal purpose. In case you are not covered for business purposes, then your rental car insurance may seem out to be useless or of no use in the existing car insurance policy.

Further, cross-check all the documents before finalizing anything and taking up any decision concerning rental insurance coverage.

Credit card rental car insurance:

Apart from your auto insurance policy, Your credit card company may also provide you insurance if you pay the rent of the car from your credit card. Though, you need to check the coverage options with the company before finalizing the policy as the terms and conditions may differ. As different credit card companies offer different rates and coverage options for the rental car coverage. Furthermore, you need to keep the following things in mind while choosing a credit card rental car insurance which are as follows:

  • How will you get coverage from your credit card for rental car insurance?
  • Whether the coverage offered is primary or secondary?
  • What are the inclusions as well as the exclusions of the coverage?
  • You should know the time period for which the rental car will be covered.
  • Do some research before buying credit card insurance for rented cars. And opt the most profitable option available.

Do I need rental car insurance?

Buying rental car insurance is ultimately your choice and decision. Though, different car companies, as well as insurance companies, may persuade you to buy and opt for a car or rental car insurance. So, you need to analyze certain factors before buying yourself rental car insurance as in case if you already have auto insurance in which your rental car is covered then there is no need to buy separate rental car insurance for yourself. And if you have home insurance and your average car insurance is covered there, but your rental car is not covered so then arises the need to buy rental car insurance separately.

Rental car insurance coverage:

The rental car insurance coverage acts as a secondary or an optional coverage for you in case you own a rented vehicle. So, you need to buy rental car insurance coverage for your rented car, which is just similar to your car insurance. Tough, it may not always be necessary to buy rented car insurance.

Buy rental car insurance online:

Now you can compare and buy rental car insurance online which provides you access to different policies where you can compare the best car insurance policies as well as the best car insurance companies providing the insurance.

Third-party rental car insurance:

The third-party rental car insurance provides insurance coverage for the rented car only as it does not provide any insurance to the driver. Moreover, if the third party desires then they can file a claim on the driver as well, for the damage to the car as the driver is considered responsible for the harm or damage. Even the claim is beard by the third party and the insurance company too will pay the third party for the claim.

Rental car liability insurance:

The rental car liability insurance shields you in case of any harm caused to you in case you are driving a rented car. Here, you will be provided medical help as well. The insurance company pays to the person being injured in the accident.

What does the rental car insurance cost?

Buying a rental insurance policy will cost you around $ 15 to $ 30 per day which you will be paying over and above the car rent. And the cost of rented car insurance also depends upon the coverage option you choose.

What is covered in the rental car collision damage waiver?

The rental car collision damage waiver covers your rented car damage up to an approximate amount of $40,000, in case the rented car is damaged, stolen, or damaged in an accident.
Here, the cost is paid for the repair of the rented car or for the replacement of the rented car. Though, here the replacement cost is calculated by subtracting the reasonable salvage value from the rented car’s actual cash value.

What is not covered in the rental car collision damage waiver?

  1. Physical damage liability: Here, you should note that insurance is for the rented car only, not for any individual or a person. So, the rental car collision will cover the damage done to the car and not to the passengers as well as the drivers. Though, some rental car insurances in the United States, do provide you cover for the Physical damage liability.
  2. Emergency medical care: The emergency medical care cost is not covered under the rental car collision damage waiver. Here, your vehicle insurance or health insurance may pay you in case of their terms are fulfilled.
  3. Other person’s property damage: Here you will also not be receiving any damage that is caused by your rental car to another person’s property. You need to pay the expenses or cost incurred by yourself or in case you are covered under property damage insurance policy then you don’t need to pay for the same.
  4. Case of Drunk driving: If you are driving your rented car while you are drunk, then no insurance will be paid off to you or you will not be covered.
  5. Certain countries: In some countries renting car insurance is not covered up. So, you need to check if your country is covered or not. Israel; Jamaica; the Republic of Ireland; and Northern Ireland are some countries where rental car insurance does not apply.
  6. Long-period rentals: The rental time periods which exceed for 45 consecutive days are not covered in the policy or they are excluded.

Conclusion:

Buying rental car insurance is an individual choice to take. This depends on some factors as to which insurance policy you already hold? If your rental car is covered in your auto insurance policy or not? And others as well. So, you should carefully analyse and choose the best option available for you in case you buy a rental insurance policy or whether you do not buy a rental insurance policy.

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