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Understanding the basics of Car rental Insurance

Your boss has finally sanctioned your week long leave to travel to your dream destination. But this dream vacation can sometimes turn into a nightmare when the car you hire is not insured.

Car insurance while taking car on rents is imperative since it can help you save your hard earned money. But isn’t it confusing with all the jargon thrown at you by the insurance agents?

There are several types of car rental insurance. Some of them are as follows:

                                                                             
Collision Damage Waiver: CDW in simple terms means the car rental company waves off its right in case you damage the vehicle . It definitely sounds exciting that CDW covers the cost of damage to the vehicle but the biggest disadvantage is that it tends to be very costly as high as $30 per day depending onthe car you take on rent.

   
Loss Damage Waiver: It means an agreement with a company in which the renter does not pay for physical damage caused either by an accident or if the car is stolen. It is not insurance but a contractual obligation. The difference between CDW and LDW(Loss Damage waiver) is that CDW is only limited till damages caused by collision whereas LDW also covers the loss incurred if the car is stolen etc.

Personal Accident Insurance: This kind of insurance covers the medical and the accidental cost of the renter and other passengers.

SupplementalInsurance: It provides coverage to someone other than the  renter or passengers who has suffered bodily damage or damage to his property.

Things to keep in mind while taking car insurance

1)      Read the insurance document carefully: Most renters believe that just taking the insurance policy is sufficient which most often is not the case. Most renters need to read the insurance document carefully. If additional drivers travelling with you cause damage you need to check in your auto rental policy if the damages will be covered or not.

2)      Check if your credit card provides any kind of protection: Check with your bank that on taking the credit card do they provide any kind of protection. Some of the banks do provide protection if renters charge car rental on the credit card.

3)      On a business trip: It is important to understand if your personal auto policy covers car rentals while you are on a business trip.

4)      Type of Vehicle: There are some vehicles like exotic cars, pickup trucks are sometimes excluded from the insurance policy.

5)      Don’t buy the salesmen talk for your car rental insurance: There are many insurance agents who will tell you that your current insurance does not cover this and that. It is advised to do your own research rather than just going by the salesmen talk.

It is important to understand that is imperative to get your car insured rather than incurring a big loss on an unfortunate day.