Car rental insurance is an important aspect when looking for a rental car. Having certain coverage is important to avoid huge repair costs or other expenses in case you meet unpleasant circumstances. So whenever you go around looking for a car rental, you will be asked whether you want to buy additional car rental insurance or not.
To ensure you make the right decision, here are some important things that you need to know:
Types of Car Rental Insurance
The four basic types of car rental insurance available at all car rental agencies like Wise Car Hireare:
- Collision Damage Waiver: Also known as CDW, this is not car rental insurance in true sense. By taking the CDW you agree to pay for any damage done to the rental car or pay compensation in case of theft.
- Supplemental Liability Insurance: This offers coverage for damage done to other’s properties and medical costs (for people who got injured) in case of an accident. In order to rent a car you need to have a minimum amount of liability insurance.
- Personal Accident Insurance: This offers coverage for damage done to your property and medical costs in case you get hurt in an accident. The co-passengers will also be covered under this policy.
- Personal Effects Coverage:This offers coverage for theft of personal belongings like electronics, jewelleries, etc. from the rental car.
Whether you need additional car rental insurance or not depend on your situation, so check all your options and then make a wise decision.
Few Things to Consider Before Buying Additional Insurance
In most cases renter have enough coverage, but situation might be different in many cases. So here are a few things to consider before buying additional insurance:
- If a mishap happens due to a person, who is not included under the personal auto policy, the person and the damages caused will not be covered.
- Oftentimes, the coverage offered by the personal auto policy is not enough. If you hire a car that is worth more than your personal car, you might have to take additional insurance.
- Personal auto policies might not cover business trips, so check your policy hiring a car for business purpose.
- Buying insurance for long term rental is different, so ensure you educate yourself well before hiring a car for long term.
Reasons Why You Should Avoid Buying Additional Insurance
Buying additional insurance can add around £5 to £30 extra per day on your rental expenses, so you must be very careful before buying additional insurance. The most common reason why people make mistake while buying car rental insurance, is that they don’t understand auto insurance well. Even if renters are not completely covered, some amount of coverage is always available.
The leading credit card companies offer collision damage and theft protection for rental cars, so check the amount of coverage available. Also remember, to activate the coverage, you need to use your credit card to pay the rental bills.
So in order to make the best deal and make the most of the money you spend, educate yourself about auto insurance and avoid paying extra. Check all your options first and then hire a car.