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Imagine you have just mapped out an exalted outing with your family or friends by renting a car but the car rental company has saddled you with questions regarding the insurance such as the liability coverages of your policy, if you have any, and your credit card details. And this is where car rentals get you. A lot of people are outfoxed due to lack of enough knowledge and pay for insurance that they already have.
Of course the best way to protect yourself is to use reputable car rental agencies like Discount Car but if you can't then here are few things to know before you agree to buying insurance:
If you already have a policy then the company will surely ask you myriad questions about your current policy. Many a times we are not aware of the conditions set up the by the policy and when the company enquires we are left dumbstruck which may lead to purchasing an additional policy.
To steer clear of additional policy, examine your current policy documents and clear your doubts from the insurance provider. Basically your policy should have following coverages:
a. Coverage from damage and theft.
b. Liability for injury to others.
c. Coverage from personal effects
If your policy covers the above aspects then there is no need of going for an insurance offered by the rental companies.
The next step a rental company would take is enquiring you about your credit card. A credit card offers coverage from collision, damage and theft. Most of the folks are relied on the credit card coverage and make them land into a trouble because a credit card only provides you with secondary coverage like it may bulk up your auto insurance policy. Secondly, each coverage is not covered by a single card. For example, a higher end Mastercard might dispense you ample coverage but cards of other levels may offer only little protection.
So it is recommended to not assume and rely on the credit card. Again, examine your card documents carefully.
Now, you went through the documents thoroughly, talked to your agent and conclude that you aren't protected. Sometimes upgrading your auto insurance policy and credit card might work. But the upgrade will cover for the damage to the rental car, the personal liability coverage is still not achieved.
The auto insurance policy, credit card and upgradation are failing to meet the needs and the only option left is insurance offered by the rental company.
Afore opting for one, ensure the integrity of the company. A reputed car rental company offers you a collision damage waiver (CDW) and loss damage waiver (LDW). The CDW covers the damage caused by collision with another vehicle while LDW shields you from the theft and physical damage. Pick the company that offers you maximum coverage.
Different firms serve different parts of the city throughout the world or at different locations of the city. For example, car rental companies of Australia must be having different branches in different corners like Sydney bondi, Sydney city 10, Sydney tarren point, Sydney airport, Sydney paramatta, Melbourne airport, and more popular places like them. Choose the one that is nearest as well as covers you efficiently.
The CDW and LDW are primary coverage and the company may also offer you additional coverage of accidental death and personal property insurance. Accidental death pays your beneficiaries if you die in a crash in the vehicle while personal property pays to cover your belongings in the car.
So, car rental insurance is indeed a “must-to-have” at today's scenario but before concluding on one, think of all the aspects and most importantly don't get lured by the sales presentation of the company.