Insurance When Renting A Car

WHAT TO KNOW ABOUT INSURANCE CLAUSES

When you rent a car, there are often insurance clauses that come with the vehicle. These clauses are meant to protect both you and the car from legal liability if something happens while you’re driving.

Even though these clauses can be helpful, they can also make it more difficult for renters to know what not to do. For example, some insurers will only cover damages incurred by themselves or their property. So, if someone is hit by a car driven by you and their injuries were caused by your own negligence, the insurer may not cover those damages.

It’s important for renters to read the insurances clauses so they understand what they can and cannot do while renting a car.

CAR RENTAL INSURANCE POLICIES

Insurance when renting a car are all about policies, they’re what your agreeing to. It’s important to consider when renting a car. Policies are designed to protect the renter and the renter’s liability in the event of an accident.

Most insurance policies will cover damage to the rented car as well as injuries sustained by passengers, but these policies can vary based on state laws.

These insurance policies often come with a deductible, which is an amount that you have to pay before coverage kicks in. The deductible will vary depending on the policy and state law, but it’s often less than $50 for most companies.

Additionally, some car rental companies offer additional benefits like 24/7 emergency roadside assistance or extended warranty options that cost extra.

COVERING THE COSTS OF AN ACCIDENT

Whenever you rent a car, you are paying for the use of the car plus insurance. When you borrow a car from a company, it’s important to know what kind of insurance is being provided by the renter and what types of coverage you’ll be receiving in case something happens.

Here are some things that could happen when renting a car:

You cause an accident while driving another person’s rental car

The renter’s insurance doesn’t cover your accident

Your own auto insurance won’t cover the damages to their vehicle in some cases. Insurance when renting a car may give you some more protection. 

LINGERING QUESTIONS.

What will happen if I cause an accident while driving someone else’s car?

The short answer: if you damage or wreck a rental car, you’re probably on the hook for the damages. But there are exceptions.

Here’s what will happen if you damage something while driving someone else’s car:

• You’ll have to pay for damages up to the value of the car itself.

• If you cause an accident that injures or kills someone, you may be sued for larger amounts — in the millions of dollars, in some cases.

• If you take out a full-coverage insurance policy before renting, your own insurance should cover damages. That would be true even if you didn’t have insurance yourself (although it wouldn’t cover injuries).

• If your personal auto policy coverage doesn’t extend to rental cars, and you don’t buy a special policy from the rental company, your credit card might cover damages. It depends on whether the card company considers the car a rental or not — most don’t. And even after paying off your balance, you could still be liable for 20 percent of the unpaid balance on your card.

Who is responsible for paying for the damages incurred?

When renting a car, you have to be aware of who is responsible for paying for any damages incurred. If a driver has comprehensive and collision damage waivers, he/she is responsible for all of the costs associated with the accident. If the driver does not have these waivers, the company will be responsible for the damages. Either way, the driver must notify the rental company about the accident and receive an estimate for repairs before any repairs are made to the vehicle. The driver should also report all accidents to his/her auto insurance provider.

What are the risks involved with renting a car?

You are probably aware of the risks involved with driving a car that you don’t own. But what about when you rent a car? We know you want to enjoy your vacation and not worry about potential problems, but you need to be aware of the risks involved in renting a car and take the appropriate steps to protect yourself.

Towing charges: If your car breaks down and needs to be towed, you’re responsible for paying for this service. You may also have to pay for any other damage your car does while being towed.

Personal effects: Any items that you bring into the rental vehicle with you become your responsibility if the car is stolen or damaged. These include purses, backpacks, cell phones, computers, or anything else that isn’t specifically covered by the rental company’s insurance policy.

Physical injuries: The driver and passengers are responsible for any physical injuries they sustain in an accident while in a rental vehicle. This includes passengers who aren’t named on the rental agreement. Even if you’re not at fault in an accident, your personal insurance may cover only a portion of any medical expenses resulting from injuries sustained while driving the rental car.

Liability: If someone else is injured in an accident because of something that you did or failed to do, their medical expenses may be covered by their own insurance or, if they’re injured while riding in the car, you may be responsible. If someone else is injured because of a collision with another vehicle or because of something that happened during your rental period, the other driver’s insurance company will likely cover the medical expenses related to that injury.

If you are involved in an accident while driving a rental car, contact your local police department and file a report. This will help you document what happened and provide evidence if it later becomes necessary to pursue compensation from the rental company.

What insurance clauses should I be aware of when renting a car?

Here are some of the main terms that you should look out for when you’re looking at rental car insurance:

Excess – Excess is the amount that you have to pay towards any claim in addition to the cost of the expenses. Ask about this before you take out the insurance or you could end up paying more than necessary.

Personal accident cover – Personal accident cover covers damage or injury that you or your passengers sustain during the period where your car is being driven by an authorized driver while you are responsible for its upkeep and/or use. It covers accidental death benefit and liability protection, which includes legal fees if you are sued as a result of an accident with an uninsured driver.

Loss or damage to personal belongings – Loss or damage to personal belongings means those items of value that are not permanently attached to the rented vehicle (eg. luggage, cameras, laptops, and mobile phones). Cover will be provided for loss or damage caused to these items only if they are in the vehicle at the time of an accident.

Loss of or damage to the vehicle – loss of or damage to the vehicle means the total loss or damage to the rented vehicle, which is caused by any accident which is covered by the rental agreement and/or a third party insurance policy.

Exclusions. Rental companies sometimes say that certain types of damage are not covered by their insurance policies or that they will charge extra for certain items (for instance, if a window is broken while using the windshield wipers).

CONCLUSION

In general, it is required by the law of your country to have insurance when renting a car. This can be taken care of by either the car rental company or the credit card that you are using. However, you always have an option to use different insurance in addition to what they provide, especially if you’re driving through an area where the roads and drivers might not be familiar with. By checking online reviews you can get a good idea of whether you are being offered actual insurance or an insurance-like product that papering over minor insurance coverage with additional fees and exclusions. Please note, this isn’t any sort of advice.