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Rental car insurance is essential when renting a car, Importantly most rental companies do not offer collision damage within the rental price. Links provided for Collision Damage Waiver (CDW) policies and other insurance considerations.
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Rental Car Insurance
Some Practical Advice
Rental car insurance is essential when renting a car, liability insurance is often included within the price, fire and theft insurance may also be included but it's always a good idea to ask.
Importantly most rental companies do not offer collision damage within the rental price. To protect yourself against having to pay for car repairs (or even a brand-new car) in the event of an accident, you need a Collision Damage Waiver (CDW) or Loss Damage Waiver (LDW) This may be available from the following sources:
Rental Agency
When renting the vehicle the agent may offer a CDW (or LDW) when you pick up the car.
Credit Car Companies
Some credit-card companies provide free collision insurance for rentals charged on their Gold or Platinum cards. Unfortunately, the coverage isn't always as good as it seems, and many card issuers no longer protect overseas travelers or limit their protection to cheaper cars.
To make matters worse, you may be required to authorize a deposit on your credit card up to the replacement cost of the vehicle, which isn't very practical if the car's value is more than your credit-card limit. If you get into an accident, you'll normally have to settle up with the rental firm, then seek reimbursement from the credit-card company after you get home.
Insurance Policy Holder
If you have adequate insurance on your own car, including collision and comprehensive, this may be enough. Contact your insurance company.
Find out how much coverage you have on your own car. In most cases, the coverage and deductibles you have on your personal auto policy would apply to a rental car, providing it's used for pleasure and not business. If you don't have comprehensive and collision coverage on your own car, you will not be covered if your rental car is stolen or if it is damaged in an accident.
As well as damage to the vehicle insurance considerations should be made for personal injury (to enhance any medical insurance policy) and personal effects (loss or theft of personal items).
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Site written by Alex Szeremeta & Ian King