Rental Car Insurance Coverage
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Most travelers are usually uncertain about their car insurance coverage when they approach counters for car rental.
James Smith, an economist based in North Carolina paid an about 1,100 dollars for damages of three rental cars for the past five years. Last year, some rented cars have been damage due to accident. His personal car insurance policy would have covered most of the damages brought by the accident but he didn’t make any claim from the insurance company and had to pay for some deductibles.
According to the recent survey done by the National Association of Insurance Commissioners NAIC from 632 consumers, 42% of them were confused about their insurance policy and 34% were purchased a rental car coverage to make sure their were covered.
When renting a car, most of the consumers buy unessential coverage which end up wasting money. The average rental coverage is sufficiently covered for most drivers especially if you are going to travel for pleasure.
Before buying this type of insurance, consumers must check first their existing automobile insurance coverage like liability, comprehensive and collision which most of the time applied, even when you are driving a rental car. To make it certain, you may also need to compute for the value of the loss or damage of the vehicle if accident occur and decide if you still need to add a suitable policy.
Ask for the loss waiver or collision damage waiver CDW. Some car rental companies hold you responsible for the company’s possible revenue loss while their car is being repaired. This policy is normally covered by your vehicle insurance which vary by the state laws. Some credit cards may also cover for the loss waiver or collision damage waiver which can pay for the damages of the rented car. Talk to your insurance agent when you are going to use your credit card to pay for the damages and check with your credit card company for some rules and restrictions.
Other optional car rental insurance which you can purchase at the rental car counter are liability insurance, personal accident insurance and personal effects coverage.
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Liability insurance relatively provides an excess liability coverage when the time you rent a car. Car rental companies should provides the state minimum liability insurance for every consumers who wants to buy this coverage. If you are a frequent car renters, non-owner liability policy is more ideal because it avoid the cost of consistently paying for an extra liability coverage.
Personal accident insurance provides medical and ambulance coverage to you and your passengers. This may not be necessary if you already have health insurance or sufficient medical coverage on your vehicle insurance policy.
Personal effects coverage pays for the stolen items in your car. You should have to show a proof of ownership or receipts when filing a claim.
With essential and adequate information before purchasing a rental car insurance... you will absolutely hit the road with peace of mind.
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