Does My Full Coverage Insurance Cover Rental Cars – 7 Things to Check Before Buying Rental Car Insurance Buying rental car insurance and protecting your rental car can be confusing and overwhelming. And in the midst of all the confusion, we tend to forget or overlook the pesky details of car rental insurance. Here is a list of 7 things to check when booking your next trip! 1. Consider getting insurance from an independent insurance provider When you hire a car, basic/standard insurance is usually included in the booking. However, this standard insurance comes with many exclusions that give you little or no protection for your trip. And that’s where it can get tricky. Car rental companies have been known to trick customers into buying their excess insurance which can cost as much as $40.
Getting your insurance policy from an independent insurance provider (like ) can save you up to 40% of your money! Want to learn more? Check out our additional cover page to learn more about the other types of rental car insurance on the market.
Does My Full Coverage Insurance Cover Rental Cars
2. Double-check everything your rental car insurance covers One of the most important things you should pay attention to when shopping for rental car insurance is to check what is covered and what is excluded from your insurance policy. The most common exclusions in car rental insurance are damage to the engine, tires, wheels, roof, chassis, windows and mirrors.
What Does Car Insurance Include?
Another thing that is almost never covered by basic rental car insurance is key and lock coverage. So if you lose your keys or lock yourself out of your car, your insurance policy won’t cover you.
Likewise, if your car breaks down or you get into an accident and need roadside assistance, chances are your rental car insurance won’t cover you.
3. Make sure roadside assistance is included in your insurance policy Another thing to check when buying car rental insurance is whether you are covered for roadside assistance. Most rental companies have a separate additional insurance policy specifically for roadside assistance, costing up to $A7 per day.
So if you want to rent a car for seven days and decide to get full coverage by purchasing insurance from your rental car company, you’ll have to pay up to $280 for additional coverage plus $49 for roadside assistance, which is $329 for insurance alone!
What’s Not Covered By Credit Card Rental Car Insurance
However, if you opt for an independent insurance provider with comprehensive policies such as , you can get an insurance policy that covers everything, often more than the excess premium. 4. Be prepared for a credit card deposit The only downside to buying car rental insurance from an independent provider is that most car rental companies will require you to leave a security deposit with them, which is refundable when you return the car.
Car rental companies must do this to ensure that they will be paid if their customers have an accident or damage the rental vehicle. Most car companies require a credit card for this. They usually don’t take money, they just hold the amount in your account and release it
So make sure your credit card limit allows you to pay the deposit and any other expenses you have planned for your trip. 5. Consider bookings with free cancellation Plans change often – something urgent could come up, you could get sick or you could find a better and cheaper deal!
Whatever the reason, make sure you have the freedom to cancel or reschedule your trip – whether it’s the rental car itself or the insurance you bought for it.
Credit Card Car Rental Insurance: How It Works, Cards That Have It
Always read the terms and conditions carefully before making any booking as these things are usually buried in the fine print and often get overlooked by most people. 6. Make sure the insurance provider is regulated The world of car rental insurance is not black and white. There’s a lot of gray. A lots of. Unfortunately, car rental insurance can be very deceptive and this is something we all need to be aware of.
Always check that the insurance provider is regulated. You can do this by reading the text of the Policy or Product Disclosure Statement. Check that the insurance you intend to purchase is valid for the type of vehicle you are renting, the country you are traveling to, etc.
By doing this, you will be prepared to deal with the salesperson at the rental desk who will try to sell you their insurance policy by telling you that third party insurance is not valid or that you must purchase insurance from the rental car company. etc.
There is no definitive guide to help you figure out what you need and what you should buy other than the rental car guide compiled by . It talks about all the different types of products offered in your country of travel and tells you what you need at the rental counter or in case of an accident. 7. Keep the company’s emergency phone number handy Finally, make sure you have an emergency phone number with you. You don’t want to be stuck in the middle of the road with a broken down car trying to figure out who to find and how to find.
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Be prepared and check that the emergency number listed on your policy statement or website is working and up-to-date before you leave. It is human tendency to make mistakes. But unfortunately, in the real world, a small mistake can cost you thousands of dollars. Rental Car Insurance Tips If your vacation plans include a rental car, you may be tempted to forego the CDW/LDW (Collision Damage and Loss Waiver) that the rental car representative has pressured you to purchase. While it can be a smart way to keep $20 to $30 in your pocket, be sure you’re not mega-pound wise and foolish. Don’t just assume that your personal car insurance policy will protect you. Read the fine print and be aware of these facts about car insurance and car rentals.
Auto insurance policies are regulated in individual states and differ from carrier to carrier. While personal car insurance policies can extend damage protection to rental cars, they usually only do so if you have a comprehensive coverage policy – also known as comprehensive and collision coverage. If you only have the personal liability and uninsured motorist coverage required by most states, it will not cover loss or damage to the rental car.
Even if you have collision and comprehensive personal insurance, your policy may be limited to the value of the car you own, not the one you rent.
If your personal car insurance also covers the rental car, it can still only pay the actual cash value (its published blue book depreciated value) or the cost of repairing or replacing the damage once you’ve met the deductible amount. If you bother to read your rental car agreement (and you really should), you may find that it requires you to pay back the full retail value of the rental vehicle. Trust us, it will be much more than the actual cash value and you will have to make up the difference out of your own pocket. You are also likely to face excessive premiums the next time the policy comes up for renewal.
Everything You Always Wanted To Know About Comprehensive Car Insurance For Rental Cars
Your comprehensive personal car insurance may not cover a rental company claim for loss of use of the vehicle while it is being repaired or replaced. Check your policy to see if there is a non-owned car allowance to cover this potentially large charge.
Adding insult to injury, even after repairing the rental car you wrecked, the rental car company can also claim a diminished value because the repaired vehicle won’t have the resale value of a similar unit that wasn’t in an accident. Your personal car insurance will not pay for it, so you will have to.
If you rarely rent a car or are inadequately insured with your personal auto policy, bite the bullet, buy a CDW/LDW and enjoy your vacation.
If you’re planning a trip that includes a rental car, check the fine print on your car insurance policy before you start your trip.
Credit Card Rental Car Coverage
If you’ve ever rented a car at O’Hare or Lindbergh airports, or many major metropolitan airports, you’ll find that the rental car portion of your bill can be almost the same as the tax/fee portion of the bill. That’s because cities try to charge business visitors their internal costs, instead of raising local taxes. They know that a business traveler may not have many options if they have to be in that city, so they will pay.
When renting from a smaller off-airport facility, chances are that if you book a full-size car, you may need to upgrade as they will likely only have economy vehicles available. If they downgrade you, you pay less, but if they upgrade you, it’s an upgrade