Driving a rented car can be money saving. This more so when you are travelling to a new locations and don't need to own one for the short periods stay. Reasons for taking a rented car may vary from short stay, travel and adventure or just for personal travel around a locality. When doing so, you should consider taking up a cover that will meet your needs. This needs and worry differ from person to person, time and seasons. Taking an insurance cover will come in handy when things go upside down while travelling. Even at it when buying these Rental Car Insurance cover do you know what they are and what they cover? Here are some of this insurance cover to choose and what they stand to cover you from:
4 types of rental car insurance
1. Collision Damage Waiver
Collision waiver or loss damage Insurance is an insurance policy that is offered by insurance company or renting company that covers you incase of rented car loss or damage, you will not be required to pay for the repair or replacement.
2. Personal Accident Cover
Also considered as first and second party insurance cover. The personal Accident covers the driver(first person) and the passengers(second person) who are onboard the rented vehicle. Benefits that will be realized in this policy include, medical cover, ambulance transportation and death benefits for the driver and the passenger(s).
3. Personal Effect Cover
Personal effects cover will cover theft of goods from the rented car. For this a limit will be stipulated for different companies and more consultation will be required before you purchase.
4. Supplemental Liability Cover
Also considered as third party insurance. Supplemental Liability covers you against damages that can be realized on other road users. This covers other people's property - third party property. Benefits from this insurance mainly are medical costs for other person injuries, repair damage to other's property E.g. vehicle, bicycles, Motor-bikes etc.
This insurance is also covered in the personal auto insurance.
Do I need rental Car Insurance?
To answer this, a proper research will be required. for instance:
A. Can I manage the cost?
The cost will range from, the premium paid for the policy, Cost of Damage that may occur or Cost for medical expenses that may be associated with the trip if any accident were to happen. If this may run into amounts that you may cause dent to your pocket, then it is appropriate to consider buying a policy to protect yourself.
B. Do I know the security of my destination?
Security factor of the area to visit should be put to consideration. If the area has medium to high crime rates it is highly considered to take the insurance to protect yourself against the unknown.
C. What is my mind choice?
This is based on your judgement. If you are a "risk-free" person who think you don't require one then your choice is enough. However, it is wise to consider taking one since you will not have control of everything that will happen to or the car along the trip.
D. What is distance of my trip?
If the trip will be overseas then it is not needed to purchase from your local company. However, in the abroad when you you need to rent a vehicle in the foreign land, then a cover will be required if the laws of that country allow you rent a vehicle as a foreigner.
E. Do I have other complimentary policies?
If you own a car then chances are that your auto cover policy will cover you when you rent out a vehicle. Also credit card will also offer rental car Insurance, however this may for the secondary claim. with is you may not need the rental car insurance.
However, if you don't have a complimentary policy, then it is wise to take a policy for the rental car you are about to rent.
Acronyms associated with Rental Car Insurance
TPL – Third Party Liability
PEC – Personal Effects Coverage
EP – Extended Protection
ALI – Additional Liability Insurance
CDW – Collision Damage Waiver
CDI – Collision Damage Insurance
LDW – Loss Damage Waiver
SLI – Supplemental Liability Insurance
LP – Liability Protection
PAI – Personal Accident Insurance
In general, when buying a rental car insurance a careful research and consideration should be made. A good understanding and comprehension of the fine prints should be your first consideration to ensure that policy you are purchasing are the right ones.
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