Rental car insurance is a type of travel insurance that provides coverage for both the owner of the policy and the rental car company. Because renting a car is much more reliable and flexible than public transportation, having rental car coverage while on a trip is very important.
Good insurance companies such as Youi offer two types of auto insurance: collision insurance and liability insurance. The fist type of car rental insurance provides coverage for the repair costs in case you have been in an accident with the rental car. Repair and replacement are covered by this type of insurance. The second type of rental car insurance, liability insurance provides coverage if you as the owner of the insurance suffer injury or even death. Liability rental car assurance will provide coverage for the expenses after the accident in the first case or will compensate the beneficiaries in the later case.
Does my car insurance provide coverage for rental cars?
Before departing on a trip you should always check if your car insurance is applied as a travel insurance. There are some cases when your travel insurance will be applied to any rental car in the world. But not all car insurance companies provide such extensive coverage, or some companies will only provide liability coverage and not collision.
Should I buy rental car insurance ?
If you plan on traveling abroad and wish to rent a car you can either get rental car coverage or you can check before you leave to see if your car insurance already provides protection for rented cars. Another important thing to know is that rental car companies offer rental car policies themselves, but it is not called insurance, but waivers. The same as with rental car assurance, there are two types of waivers, Loss damage waivers and collision damage waivers. And just like collision and liability rental car insurance, collision and loss waivers require you to pay £6-12 for each day you have the rental car. To these type of waivers you can also add death or personal property insurance, which will provide coverage for medical expenses should you get in an accident or worse.
Buying rental car insurance from your rental car company will be more expensive than getting it from a regular insurance provider. Before departing on a trip you should always check with your insurance provider, because if you have life, medical and property insurance you might not even need to apply for a rental car waiver.
How much is rental car insurance ?
The price of your rental car policy can vary according to the destination you want to use your insurance. In this case, a worldwide rental car assurance will be more expensive than an European rental car policy. For example, a 31 day rental car insurance that covers up to 7 drivers in Europe can cost somewhere around £49, while the same type of policy but with worldwide coverage will cost £65 for drivers between the ages 21 and 74. This sort of rental car protection policy will provide coverage in case you damage it during an accident or in case of theft. Also this insurance will provide up to £2000 car rental excess coverage.
The rental car excess insurance policy will provide the rental car holder, and not the vehicle. You can also decline the rental car company’s excess coverage when you collect the car. In this case if your car is stolen or damaged the rental car company will charge your credit card for the excess and then claim reimbursement from your rental car insurance policy.