Things to Consider Before Buying Rental Vehicle Coverage

By | December 6, 2012

When renting a car, it is essential to have adequate insurance cover in place. During the period of hire, you may be liable to pay for the damage caused in a collision. This may apply even if the damage is not because of your fault. In most cases, rental vehicle coverage provides third party liability, collision coverage, comprehensive coverage, loss of use and many more benefits for rented and borrowed vehicles.

Things that are covered and that are not under rental insurance policy
Rental vehicle coverage covers as many drivers on the rental contract as you like. Each driver along with you are covered for rented or borrowed vehicles.

It does not provide coverage for

  • Non-rental vehicles
  • Motor homes, trailers or caravans
  • Off-road vehicles and recreational vehicles
  • Expensive vehicles or antique vehicles
  • Motor cycles and motor bikes

And consider the differences between a rental vehicle policy and an auto insurance policy.

  • If you decide to take rental vehicle policy, you need not select deductibles for protection. But when you consider buying an auto insurance policy, you need to pay a deductible.
  • If you have full coverage auto policy, you would have some kind on rental protection on your policy. But, if the rental company asks you to sign the agreement accepting responsibility for providing your own third-party liability, rental vehicle policy will provide you the primary coverage.
  • If a rental company offers rental vehicle coverage, you need to pay extra to the rental company for its policy, while your auto policy will keep you from paying extra charges.

Thus, after discussion with the insurer regarding details of rental vehicle policy, take decision to purchase the insurance.