Car Rental Insurance Basics

Individuals who are planning going on a travel and decide to leave their cars behind and opt to rent a car instead are provided with numerous insurance solutions. The most important fact that travelers need to keep in mind is that there is not necessary to purchase a separate car rental insurance policy on the long haul. Remember that you will only need to drive a rental car for days, a couple of weeks, or a few months at most.  You will only need to protect yourself and your passengers in these two types of risk:

    •    Collision or loss
During the period that a vehicle is in your possession, you are essentially liable for the value of any damage, loss, or theft that may happen or transpire.

    •    Liability
When you are driving a rental car, you are potentially liable for damage, injury, or loss that you may cause to another person’s vehicle or property.

Experts say that when purchasing car rental insurance policy, it’s always best to prioritize liability coverage as this is considered to be a far greater risk. Injuries of a third party oftentimes translate to a lawsuit which will undoubtedly wipe your savings and finances clean. In the event that you caused damage to the car or personal property of another person, you will only be demanded to pay for repairs and replacement of the car at most. This is relatively cheaper since you will not encounter litigation process- one that is tedious, time-consuming, and costly as well. Therefore, it is best to get liability coverage when shopping for car rental insurance.

Before shopping for a rental car insurance policy, you will have to check the existing car insurance policy in place. If you opted for wider coverage which includes collision and comprehensive coverage, it will not be necessary for you to apply for car rental. This is due to the reason that protection already extends to rented cars that you will be driving in the future. If your current car insurance provider does not offer collision and comprehensive insurance, it is then recommended for travelers to check on cheap car insurance quotes and rates for rental vehicles.

In the event of an accident, liability insurance from your auto insurance company will pay for the damages and injuries incurred by a third party. The medical expenses plus repairs to damages that arise from your negligence will be adequately covered if you have comprehensive insurance in place.
One other way of obtaining car rental insurance is through your credit card company. Majority of credit card companies offer car insurance for free provided that the credit card holder charges the cost of car rental onto their credit cards. Although there are also credit cards who not apply car rental insurance upon car rental transactions, it is always best to ask for discounts at the counter. If your credit card company actually offers rental car insurance, it is best to check the fine print and the details that pertain to the amount of coverage that they can provide to you.

Policies and coverage differ across credit card companies so be sure to ask them the extent of protection they can offer while driving a rental car. Some offer both liability and collision, while there are some which only offer one or the other. If your credit card company only offers limited coverage, you will need to buy extra coverage, especially if you plan on driving a rental car for a longer period of time.

Rental companies also offer several types of car rental insurance policies to its customers. If you only have basic auto insurance from your provider or if you do not own a credit card or opt to pay in cash, you will still need to get car rental insurance from the company where you will be renting out the vehicle. The insurance policies or waivers offered by rental car companies widens your liability protection and relieve you of the obligation of paying off damages to a rental car that encountered wreckage or even totaled after suffering from a road accident.

There are two types of waivers that car rental companies offer to its clients:
•    Loss damage waivers (LDW)
•    Collision damage waivers (CDW)
These waivers serve similar set of functions as that of your collision and comprehensive coverage. It frees you of any responsibility and financial obligations if the car rental meets unfortunate events such as theft and vandalism. It also takes care of car replacement if you totaled the car rental in an accident. These waivers will require you to pay deductible in a much similar fashion as your permanent auto insurance policy. Of course there are rules that need to be followed and are strictly exercised by the insurance companies nowadays.

For instance, if the accident or mishap was due to driving under the influence or over speeding, the coverage awarded by the waiver will automatically be null and void. Be sure to practice safe driving skills and be more responsible on the road so you can avoid damages and injuries to yourself, your passengers, and to third party individuals as well.

Remember that waivers only provide temporary protection. Unlike permanent auto insurance policies like car insurance for young drivers or cheap auto insurance quotes for women, car rental will immediately expire once the rental period ends too.

Know how to compare auto insurance solutions for car rentals. Do not duplicate your coverage if you already own a collision and comprehensive insurance. There is no need to obtain cheap car insurance quotes and rates that apply to rental car properties since you are already paying premium for adequate protection for car rental through your permanent and existing auto insurance policy