Renting a car has become more common especially with the growth of the travel industry and ride-sharing culture. When traveling and decide to rent a car, it might be challenging to figure out if you require a rental policy to cover you or if your existing cover will still apply.
When this question is directed to a car rental agency, they would advise you to take up rental insurance, but remember to do some research before you do. Depending on the state and the type of auto insurance you have insured your car against, the question of whether to have additional coverage for the rental car can have more than one answer.
In this article, this car hiring company has prepared a list of all you need to know about auto insurance and car hiring services.
You Might Need Additional Coverage
Before enjoying your holiday in the new state, make sure you are aware of what your current policy can cover to determine if the same policy can be used for the rental car. Most rental agencies will require coverage that is similar to your current auto insurance.
Also, note that most auto insurance policies won’t work outside the U.S. When this is the case, make sure you opt for a temporary policy that will cover you for the period you intend to rent the car.
Avoid Buying Rental Insurance In Rental Companies
It is always convenient to arrive at the airport, sign an agreement at the rental agency, pick up your new rental car keys and off you go. Do not be tempted to do this.
When it comes to adding insurance cover on your rental car payments, most rental agencies will charge you expensive insurance which can range from $10 to $20 or $25 per day which will eat up your budget without you noticing.
Instead, when renting out a car, visit independent insurance agencies which have specialized covers designed with rental requirements in mind.
Your Credit Card May Provide Limited Coverage
When traveling, saving should be on top of your list to ensure you experience more for less, this includes paying for insurance. When you pay for your rental car with a credit card, some companies may offer coverage for the rental car at no extra cost.
Get A Rental Insurance Coverage
When you rent a car and do not own auto insurance, make sure you purchase the rental car insurance. These insurance policies can include;
- Collision damage waiver – this involves all the costs of repairs for the exterior of the vehicle. This policy will cover most of the exterior repairs but you will need to pay a deductible out of pocket.
- Personal effects coverage – When on a holiday and someone steals your rental car, having a rental insurance policy will cover you from this loss.
- Liability protection – This policy covers any loss caused to a third-party vehicle. Although a deductible is required, having this cover will help you deal with any issues that may arise in case you do not have one.
- Personal Accident Insurance – This policy covers you when involved in an accident and protects your property whenever it is stolen or destroyed.
- Roadside assistance – When you are in a new country and your rental car gets stuck due to a flat tire or complications, having this cover will make sure you get assistance to help you fix your car and continue with your journey.
Additional Important Things to Note
- Do not file accidents with your insurance company – Although it is not common knowledge when your rental car is involved in an accident, do not panic and call your insurance company as this will increase your premiums in case they agree to pay
- Rent a car away from the airport – Most people fail to realize that they pay more at the airport than renting in the city. This is because the airport’s parking lots are paid for by the customer and not the company as many believe.
- Use your credit card to pay – When renting a car, it is important to always pay using your credit card. This not only ensures the credit card company covers your rental car insurance but guarantees a reimbursement whenever you pay out of pocket.
Auto insurance is the same for both regular and rental cars save for a few differences, which can increase in case you are traveling out of the U.S. Making sure you confirm with your credit card company about what your card can cover will help you enjoy your holiday with a peace of mind. Ensure you are careful while driving a rental car, especially if you are likely to fall short of the deductible.