Have you ever thought of owning a car, but the steep prices have made you reconsider your decision? Well, you aren’t the only one, and there’s a workaround to this unique problem. Rental cars. The increasing pollution in an urban setting has made car more of a necessity than a luxury. So, having one at your disposal increases the convenience. Moreover, a rental car further makes it easy since you need not worry about its repairs, hefty loan repayments, and other obligations.
Nowadays, there are increasing number of rental car companies that make it easy to drive one of your favourite cars without having to deal with all its hassles. But with these limited responsibilities, you still need to be careful of any damages when driving one. This is where a car insurance
policy comes into the picture. While a rental car insurance differs from a personal car insurance policy, this article sheds some light on the various insurance coverage that can be purchased when you buy a rental car insurance plan.
Collision Damage Waiver (CDW):
Collision damage waiver is the facility where damages to your rented car are insured. This cover is limited to include damages on the bodywork of the vehicle like scuffs and dents. Collision damage waiver does specifically exclude damages to consumable spares like battery, tyres, engine, gearbox, or even windshield and the interior. Further, reckless driving on the car is also excluded from CDW under rental car insurance coverage.
Protection from theft:
After insuring against damages, the second most common coverage is against theft. Theft of the vehicle when in your possession will make you liable to the rental car company. Not having rental car insurance coverage for theft will cause financial loss and hence advisable to purchase one whenever you chose to drive a rented car. This coverage also includes damages as mentioned above and thus offering dual protection of theft and collision.
Like a third party car insurance
cover in a personal policy, rental car insurance also offers coverage for third-party liabilities. Any accident resulting in an injury to person or damages to property will be insured under this rental car insurance coverage. However, if you are found to disobey laws, then this rental car insurance cover shall not provide for the cost of damages or injury.
What are things to check when buying a rental car insurance cover?
Unlike a personal vehicle insurance policy, the factors to consider differ when it comes to rental cars. Here are some pointers to be addressed when buying one.
Maximum limit of CDW:
The maximum amount of damages covered in your policy depends on the policy opted for. However, if the claim application by the rental car company exceeds your policy coverage, you might be required to pay for the damages out of your pocket.
Deductibles are that component which you need to pay upfront when the claim is raised. Buying a comprehensive coverage or zero deductible cover can help avoid this liability when a claim is made.
Roadside assistance facility for rental cars differs among insurance companies. Some insurers provide this facility as standard inclusion, whereas others up to a specified geographic area only.
Coverage for the car:
Whether the entire car is covered under the CDW cover or specified components is what should be checked. This can help you avoid last minute hassles to pay at the time of claim.
Note these above-mentioned insurance coverages when selecting a rental car insurance policy. They will help you make a prudent choice while buying a short term car insurance
and keeping premiums in check.