Buying a car is an expensive process. The maintenance cost of the spare parts keeps increasing as the vehicle gets old. A rental car might be the perfect option for you if you don't use it much. Renting a car is a simple affair since you need not worry about its repairs, hefty loan repayments, and other obligations. However, you should a have a valid rental car insurance to stay protected from any financial liability.
How it works?
A rental car insurance differs from a personal car insurance policy. The objective of a rental insurance plan is to provide coverage to the policyholder that arose in repairing or replacement of the damaged part. Also, the coverage provided by the insurer also depends upon the geographical location of the policyholder.
So, here are some of the types that provide coverage under the rental car insurance:
Theft protection
The rental car insurance covers against the theft. Means, you don't have to pay for the stolen car to rental company. It also covers the damage done to the car in an attempt of stealing.
Collision Damage Waiver
The collision damage waiver is the type of insurance cover that protect you against any damages of the car. It is limited to include damages on the bodywork of the vehicle such as dents. It specifically excludes damages for the tyres, batteries, windshield, engine, gearbox, and interior. Losses due to rough driving are also excluded.
Third-party liability
The third-party cover will cover damages for third-party liabilities. However, if you are found not following the rules, then this rental car insurance cover will not be applicable.
Why rental car insurance?
Personal Accident Coverage
The personal accident insurance will pay for the medical expenses if your rented car gets injured by you or any other person.
Supplemental liability insurance
It will increase the maximum amount paid by the third party insurance cover.
Super Collision Damage Waiver
A collision damage waiver covers the damage against the spare parts of the car.
Uninsured motorists protection
In case you met with an accident, and the driver of another car is not insured, then this protection will help you to cover against injuries and damages.
Things to check before buying a rental car insurance cover
Maximum limit of Collision Damage Waiver (CDW)
This depends on the value of the rented car and company. However, it is always suggested to check maximum value of the CWD. If it exceeds your policy coverage, then you'll have to pay the extra amount.
Roadside Assistance Cover
Check if the roadside assistance facility comes under the standard policy or as an add-on.
Deductibles
Deductibles are that component which you have to pay in advance when the claim is raised. Purchasing a comprehensive coverage cover can help avoid this liability when a claim is made.
Keep these above mentioned points in mind. These will help you to make wise choice.
