Renting a car is often the best method of exploring sites as a tourist. You are not bound to bus or train schedules, and you can set the tempo and order of attractions. The insurance on these cars, however, can be a tricky affair.
Insurance on rental cars is not as straightforward as on private vehicles. Most people don’t know the system on which these companies operate, which can lead to further complications. Moneywise that is.
Three Types of Insurance
Rental cars have covered three types of on-road insurance: Insurance against theft, damage cover, and third-party cover. In Europe, these coverages are included with the rental fee of the car.
In the USA, some companies offer their clients the option to pay for theft and damage coverage with their credit cards. In these cases, however, we are not talking about insurance, but a waiver. A waiver is a company’s right to waive for these costs.
Insurance for theft protection is self-explanatory. This package covers all costs in case the rental cars get stolen. Additionally, you won’t have to pay for damages the vehicle suffers if someone tries to take it.
Theft insurances cover the damages only if you abide by the rules of the rental agreement. If the vehicle gets stolen in a state or country not covered by the insurance, you will have to pay for the damage. If you provoke theft by doing something irresponsible as leaving the keys in the ignition, the insurance won’t pay for it.
Collision damage covers the costs of bruises and other wounds on rental cars. In most cases, however, this insurance covers the damage to the body of the vehicle. This does not include costs on windows, wheels, and the interior.
If something happens to the rental car, you will have to pay a small fee despite the damage insurance. This amount is called deductible or excess. The amount is agreed upon in the company, and the renter will pay that amount despite the total damage.
As with theft protection, the renter must respect the rental agreement. If not, he/she will have the responsibility to cover all the costs. Illegal parking and drunk driving are some of the more common breaches of rental agreements.
The first two insurance types covered damages and disappearances of the car. This type, on the other hand, pays for the damage the vehicle caused. This includes destroying property or, heaven forbid, hitting someone.
There is a limit third-party liability can cover. This maximum varies from rental company to company. If you don’t abide by the rental agreement, you’ll be held responsible for all the damages the car caused and on the car itself.
Renting a car gives you freedom of movement when visiting a new area. However, these rentals can turn your vacation from a dream into a nightmare in an instant. Insurance can be the leading cause of headaches for some people. However, they are there to protect the company from irresponsible renters.
Rental cars have three types of insurance. They cover damages on the car and third-party liabilities. They will also cover the costs if the vehicle gets stolen.
All these policies fall in water if the renter does not abide by the rental agreement. Insurance on rental cars and private vehicles do differ to some degree. It wouldn’t be a bad idea to consult the local insurance brokers before heading to the rental company.Follow and Share with Jetsettersblog.