While owning a car today has become easy due to quick availability of loans, maintenance of the same can land you in huge trouble if you are not financially sound. Moreover, as the car ages, its repair and service costs increase. Therefore, rental cars would be a perfect option for you if you are someone who is worried about taking care of the costs involved in maintaining the car.
Getting a car on rent has become easy and affordable. All you need to do is spend your money on getting the fuel tank full and don’t have to worry about its maintenance. You can now rent a car for a day or even for months simply by submitting your identity, address proof and other required documents.
However, have you wondered how car insurance works for rental cars and what happens if your rented car meets with an accident? Read on to know all about rental car insurance.
Compared to comprehensive car insurance, rental car insurance works in a different way. The coverage, benefits, etc. vary depending on the geographical location and the rental company.
In case if the car you have rented gets stolen then with this cover, you will get coverage as the theft will be covered by insurance and the coverage will be paid to the rental company. Damages caused due to theft are also covered under rental car insurance.
As the name suggests, this type of insurance covers you against the damages caused to your own car. The coverage provided is limited only for bodywork damage and does not cover parts such as the windshield, battery, engine, gearbox, etc. Damages caused to the car due to reckless driving or driving under the influence of alcohol are not covered.
Under rental car insurance, if you rent a car and end up causing injury or damage to a third party person or property then coverage for the same is offered. The coverage is not applicable in case of damages caused due to unethical driving or breaking rules and regulations.
When you are driving a car hired on rent, you are responsible to provide coverage for the damages caused. At such times, buying rental car insurance helps as it helps you cover damages caused to cars as well as third parties.
Collision damage cover provides coverage only for the damages caused to the bodywork of the car, whereas, super collision damage covers additional parts of the vehicle. In case even if the car is damaged badly, it also gives peace of mind.
In case if the owner driver or the occupants get injured then with this cover, the medical expenses incurred are taken care of by the insurer.
With this cover, the maximum amount paid by the third party liability will increase.
This cover will cover the damages or injuries in case you are involved in an accident.
In case if the rented car breaks down in the middle of the road then with this cover you will be provided quick assistance by the insurance company. Coverage is provided in the form of quick fuel assistance, puncture, towing, etc.
This is a combination of all the above mentioned coverage, offering you protection in case of repair costs, damage, etc.
This refers to the coverage offered based on the maximum value of the car rented and the rental company. In case if the claim exceeds the coverage amount then the additional amount has to be borne by the insurance company.
Deductible refers to cost sharing of the claim amount. Deductible is not applicable in case if the coverage offered covers complete coverage or zero deductible.
Collision damage provides coverage only for the bodywork of the car, whereas super collision damage covers the entire car.
Few companies provide roadside assistance as a standard cover, whereas super collision damage will cover bodywork as well as other parts of the car.
The collision damage cover is overpriced, at times more than the rental fare of the car.
This type of car insurance provides coverage to third party life and property and does not cover the insured vehicle
This type of car insurance provides coverage to your vehicle as well as third party and property
This type of insurance provides coverage for your car’s damages and losses including events caused due to man made, natural calamities, and theft.
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You can purchase rental car insurance from the rental car dealer
Yes, you need a rental car insurance to cover the car if you are renting the same.
Yes, you can. However, you need to own a comprehensive car insurance which provides liability coverage for your car
Yes, usually a credit card provides collision damage cover whereas few do not. It is best to check on the terms and conditions of the car along with the exclusions and inclusions.
Collision damage waiver is not required if you already have a credit card or insurance coverage which provides rental damage coverage. If you don’t have personal coverage then it is necessary that you buy rental car cover from the car insurance company.
Yes, collision damage cover does provide coverage for the damages caused to the car’s body
