Rental vehicle insurance

Most types of car insurance policies are essentially the same, and rental vehicle insurance is no different. You’ll be covered for the same types of thing whether you get your insurance through the place that you rented it from or if you use your own personal vehicle insurance policy. However, there are a few areas in which car rental insurance differ slightly, and you need to make yourself aware of these areas so that you know what you’re doing and make the best decision when you go into the market for car rental insurance.

• Your personal vehicle insurance.

The comprehensive coverage, collision coverage, and liability coverage that you have for your regular use vehicle will extend to your rental car as soon as you rent it. This means that if you get into a car accident, your collision will cover you. The same goes for your comprehensive if the rental is stolen, or for the liability if you get into an accident in which you are at fault.

However, you can buy rental insurance from the rental company in addition to the insurance you have from your own policy. If you have any other coverage than your personal policy, then that is the coverage that starts once you get into an accident. Your personal vehicle insurance will only kick in once the other insurance has run out. And, of course, if you want to use your personal vehicle insurance at all, then you need to pay the deductible.

• Rental vehicle insurance from the rental company.

Most companies that rent out cars give you some type of vehicle insurance waiver. What the waivers do is basically extend the amount of liability coverage that you have for your rental so that if you wreck it, you won’t have to be responsible for paying for the car you no longer have. Sometimes you have to pay a deductible, and sometimes you don’t, depending on the company. There are two types of waiver that you can get. These are:

1. Loss Damage Waiver (LDW). This is a waiver that will give you a break if the car that you’re renting is stolen, vandalized, damaged in a storm…basically anything that would normally be covered by comprehensive vehicle insurance.
2. Collision Damage Waiver (CDW). This is a waiver that will give you a break if you get into an accident and cause damage to the car that you are renting. Basically, it covers anything that would normally be covered by collision insurance.

The companies that offer these waivers assure their customers that they aren’t real insurance. Consider that they won’t cover any of your medical expenses if you get into an accident. They only exist to get you out of paying for the rental if it gets damaged or stolen in some way. All of the insurance is based around the car. It won’t cover another person if you get into a car accident with them. They’re only waivers.

However, the same companies will give you ways to supplement those waivers with something like up to a million dollars of liability insurance. If you aren’t going to be using your personal vehicle insurance policy, then it’s important to get this so that in the event of the crash you don’t end up being vulnerable to a lawsuit from the other driver.

Cheers,

Fashun Guadarrama.