Rental Car Insurance

Not everyone can afford to purchase a car. It is not only the cost of buying a vehicle but also the ongoing expenses of maintenance, servicing, and repairs that make car ownership expensive. If you do not wish to own a car then you have the option of renting one.You can choose to rent a car for a day or even for several months. However, what if you meet with an accident while driving a rental car? This is where rental car insurance comes up. Read on to know all about the same.Read more

What is Rental Car Insurance?

Rental car insurance is a type of car insurance that offers coverage for a rented vehicle. It helps cover damages caused to the insured vehicle by accidents, theft, third-party liabilities, etc.

Unlike standard car insurance, which is issued to protect the policyholder against several risks, rental car insurance is designed specifically for temporary vehicle users and applies only for the duration of the rental period. It ensures that you are not required to bear heavy out-of-pocket expenses if an accident, theft, or other unforeseen incident occurs while using a rented car.

How Does Rental Car Insurance Work?

Rental car insurance works differently compared to a personal car insurance policy. Apart from fulfilling the legal liability, the objective of an insurance plan is to provide coverage to the policyholder for the expenses incurred in repairing or replacing the damaged part. Also, the coverage provided by the insurer depends on the geographical location of the rented car. Here are the types of coverage provided under the rental car insurance:

1. Third-Party Liability Insurance

   Third-party liability insurance is mandatory in India. It provides coverage for the loss or damage caused to the third party in an unforeseen accident and does not cover damages incurred by the rented car.

2. Collision Damage Waiver

   The collision damage waiver provides cover for the damage caused to the car due to accidents and collisions. The CDW will only provide coverage for the damage caused to the body of the rented car and not for the tyres, battery, windshield, engine, gearbox or any other interior damage. But the insurer will not provide cover if the driver is found driving the car under the influence of alcohol or drugs.

3. Theft Cover

   It also provides cover for the theft of the insured car, so that you do not have to pay for the stolen car to the rental company. It also provides cover for the damages that occurred while attempting to steal the car.

Significance of Rental Car Insurance

Rental car insurance provides coverage against theft, damage, as well as loss or damage caused to any third party. Here are some of the benefits of the same:

1. Super Collision Damage Waiver

   A collision damage waiver provides cover for the body of the car, whereas a super collision damage waiver provides coverage for several parts of the car, including glass, mirrors, wheels, etc.

2. Personal Accident Insurance

   If you or any other passenger in the rented car is injured, personal accident cover provides coverage for the medical expenses incurred in the treatment.

3. Roadside Assistance

   If the rented car breaks down, runs out of fuel, or its tyres are punctured during the journey, then 24x7 roadside assistance add-on will help you so that you get out of that situation.

4. Uninsured Motorist

   In case you meet with an accident, and the driver of the other vehicle is not insured, then uninsured motorist protection will provide coverage for the injury or damage caused.

5. Full Protection

   If you opt for this cover, then this will provide cover for all the cover mentioned above, such as theft, damage, roadside assistance, uninsured motorist, etc.

What to Check Before Purchasing Rental Car Insurance?

When you decide to purchase rental car insurance then make sure to check these things.

Maximum Limit of Collision Damage Insurance

It depends on the value of the rented car and the rental company, but it is recommended to check the maximum collision damage limit. If the claim amount exceeds the insurer's coverage, you will have to pay the excess out of pocket.

Deductible

There will be a deductible with this type of insurance, and you might have to pay a deductible to get coverage for the damage. However, if you have complete coverage with a zero deductible, you will not be liable to pay the deductible.

Roadside Assistance Cover

You must check whether roadside assistance is included in the standard coverage of your insurance plan or is an add-on.

Conclusion

Purchasing an insurance plan has become an easy task now, as you can simply visit the website of an insurer and make the purchase. You can also compare car insurance plans and purchase as per your requirements. Apart from this, you can even calculate the premium amount using the online premium calculator tool so that you can check if the rental car insurance plan fits your budget or not.