AUTO INSURANCE ARTICLE
Importance of Rental Car Insurance
By: cradel_bookWhen renting a vehicle for business trip or out of town vacations, most consumers purchased unnecessary insurance policies. Car rental coverage must be sufficient especially if you are going to travel for pleasure.
Car rental agencies provide different policies and each policy has its own benefit under the right circumstances. Before making a purchase, every consumer must review each policy that includes its limitations, exclusions and provisions. Most rental companies only provide the summary on their website therefore, it is ideal to ask from an agent for the detailed information at the rental office.
Remember that rental car insurance is a type of optional policy that you may not need to buy. When you rent a car for business trip or family vacation, the liability auto insurance coverage limits you already have from your car insurance company remain in effect. Furthermore, the comprehensive and collision coverage you purchased in your auto insurance policy remain in effect for your future protection with the same deductibles.
It is ideal to check your credit card information for some additional auto insurance coverage. Your cards may only offer auto insurance coverage from accredited agencies if you rent a car. Some agencies provide car insurance coverage based on types or classes of cars. Some cards limit the days from how many days is available. With some cards, you can’t automatically get car insurance coverage. You should enroll in a program provided by your credit card company in order to avail it. Other credit cards that provide automatic rental car insurance only reimburse for the deductible that you would have to pay based on the regular car insurance policy. Other policies may only provide collision and comprehensive coverage that would not pay for personal injury or damage to others’ property when accident occurs.
Generally, rental car agencies offer two parts of liability coverage— a supplemental liability policy and loss damage waiver or LDW. Supplementary liability coverage protects you against claims from others while the loss damage waiver or LDW pays the rented vehicle. Loss damage waiver is not actually an insurance policy. It is relatively an agreement between you and the rental agency to hold the liable for loss from all or any damage of the rented car.
Before renting a car, be guided by all the charges you could pay in the long run and how these charges may cover or may not cover you both by your auto insurance policy and rental car insurance.
When an accident occur and realize that you are not covered by your auto insurance policy, check your other insurance policies which may include your rental car insurance. If some personal properties have been stolen from the rented vehicle, your rental car insurance or homeowners insurance may cover the losses. Thus, medical coverage may cover the costs of injuries that are not covered by your auto insurance policy. Remember to always check with your car insurance company to know what is covered and not covered under your own auto insurance policy.