(content by Mike A)
It might be complicated and intimidating to buy vehicle rental insurance and safeguard your rented car. We conveniently forget or neglect the dull details of vehicle rental insurance during all the excitement. There are a few things you want to consider before purchasing car rental insurance. You should know if your credit card offers the service, and if not, how much it will cost. The type of vehicle you’re renting is also necessary because some classes may require additional protection.
Finally, it’s worth knowing that personal items such as laptops and passports must be covered by either your personal or company insurance policy for them to be protected against loss or theft during the rental period. If any of these factors apply to you, then this post is perfect for you.
Let’s take a look at these considerations.
- Try purchasing insurance from a stand-alone supplier
If you purchase car rental insurance from the car rental company, make sure to check out all of your options. You may be able to find a better deal in terms of price and coverage by purchasing it separately through an outside supplier. Make sure to check out your credit card benefits, as well. Some cards will provide insurance coverage for car rentals.
And even if they do not offer it, you can still use the card to pay for the rental and receive purchase protection on anything you buy using the credit card.
- Verify to see if your automobile rental insurance covers it all
When obtaining vehicle rental car insurance, checking what you’re insured for and what your insurance policy excludes are essential points to remember. Damage to engines, tyres, wheels, roof, undercarriage, windows, and mirrors is the most typical automobile rental insurance exclusion. Key coverage and lockout are other features that are rarely included in basic automobile rental insurance. Your insurance coverage will not cover you even when you misplace your keys or lock yourself out of your automobile.
Likewise, if your vehicle breaks down or you are involved in an accident and require roadside help, your car rental insurance is unlikely to protect you.
- Verify your insurance coverage for Roadside Assistance
When buying rental vehicle insurance, make sure you verify whether you’re insured for roadside assistance. Many rental businesses provide supplemental roadside assistance and contribute insurance coverage that costs up to $A7 per day. So, suppose you rented a car for seven days and decided to get rental insurance through your car rental business. In that case, you’d have to pay up to $280 for excess coverage plus $49 for roadside assistance, totalling $329 for insurance.
But, if you go with a stand-alone insurance provider, you may acquire an insurance policy that protects you for everything, typically for less than the price.
- Be ready to make a credit card deposit
The main disadvantage of buying vehicle rental insurance through a third-party source is that most car rental businesses will ask you to pay a security deposit, which will be returned when you return the car. Rental vehicle businesses must do this to guarantee that they are compensated if their clients are involved in an accident or cause damage to the rental automobile. For this, most vehicle companies need a credit card.
They generally don’t deduct the money instead of holding it in your account and then releasing it. As a result, double-check that your credit card limit permits you to pay the deposit as well as any other trip-related costs.
- Think about making a reservation with no cancellation fees
Plans are subject to change; something unexpected may arise, you may become ill, or you may discover a better and more affordable option. Whichever the cause, be sure you have the opportunity to cancel or postpone your vacation, whether it’s because of the vehicle rental or the insurance you purchased. When making any reservations, always review the terms since these are generally hidden in the tiny print and are often overlooked by most individuals.
- Look to see if the insurance company is licensed
Car rental insurance is not a black-and-white situation. There’s a lot of grey in this picture—quite a bit. However, automobile rental insurance may be quite deceptive, and we should all be cautious. Always check to see if the insurance company is regulated. This can be done by studying the Policy or the Product Disclosure Statement. Make sure the insurance you’re going to get is appropriate for the sort of car you’re renting, the nation you’ll be visiting, and so on.
- Maintain the company’s emergency contact information handy
Finally, make sure that you get the company’s emergency phone number on hand. You don’t want to be stranded on the road side with a damaged automobile, trying to sort out who to contact and how to contact them. Before you depart, ensure the emergency number given on your insurance statement or the website is operational and up to date.
Making errors is a natural human trait. However, in the real world, even a minor blunder may result in significant consequences. A simple mistake may have grave consequences on your wallet and peace of mind when it comes to car rental insurance.
- Maximum limit of the collision loss
Most policies have a maximum limit that they will pay for collision loss. Be sure to check the limit of your policy before purchasing car rental insurance. Many credit card companies offer free extended warranties when you buy an item with their specific cards, so consider checking if yours offers this feature before paying extra fees at the car rental agency counter.
The Bottom Line
Car rental insurance is expensive. Check your coverage carefully before purchasing car rental insurance. Do not purchase additional protection if you are already covered or do not need it – this will just cost more money. Talk to your insurer about the difference between primary and secondary coverage and deductibles to know their policy covers when renting a vehicle.
Ensure that any damage caused by theft or vandalism can be covered under your existing agreement with them- oftentimes, all the other coverages offered may be duplicative of what they provide already.
