When renting a car, it is very important to make sure that it is covered by auto insurance. Many drivers assume that their existing car insurance will cover any cars that they decide to rent, but this is not always the case. Other drivers, who don’t own cars, feel that car rental insurance is not a necessity because the rental car is not actually their own property, but they couldn’t be more mistaken.
Rental cars become your property as soon as you take them out on the road. If the car is damaged in any way, you are responsible for repairing it. Whether you caused the damage or if it was vandalized, the rental company will require you to pay for any repairs. Since repairing a car can cost anywhere from $1,000 for covering a scratch to $50,000 for replacing the car, the extra $50 on your car rental bill is certainly worth it.
When renting a car, it’s your responsibility to ensure that your car is sufficiently covered. Even if you have car insurance already, you should call your provider to find out if your policy extends to rental cars for collision damage and liability. Also, review your homeowner’s or property insurance to ensure that your luggage and any belonging’s you’re taking with you are protected.
Most car rental companies offer several different types of insurance packages for about $10 - $15 per day. No matter what your personal auto insurance package provides, car rental companies come equipped with a collection of insurance packages to suit any driver’s situation. As an added bonus, any claims you make with the rental insurance provider will not affect your other insurance premiums. So, if you were to get into an accident while driving a rental car, you own personal car insurance rates would remain the same.
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Tuesday, September 1st, 2009 at 7:27 am
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September 2nd, 2009 at 3:49 am
Do not be under the impression that your personal insurance company will NOT find out that you had an accident with a rental vehicle. If your accident involves the police & you are charged, it will go on your record, your personal insurance company will run annual drivers abstracts which will show the ticket/charge…they will find out & possiblely increase your premiums for the occurance even if they did not pay out for the accident…the potential for the loss was there & the insurance company will charge based on risk.
Also, car rental companies DO NOT sell insurance, they are not licensed insurance brokers…however they do sell LDW (Loss Damage Waiver) which means: this is an agreement between the car rental company & the renter that if you pay a fee of (example $19.95 per day) the car rental company will lower your financial responsibilty in the event of a loss to $500.00. The rental agreement will state in the fine print, if you operate the vehicle within the laws of the highway traffic act & have an accident you pay your only the deductible…however, if you are charged (ie: careless driving) the Loss Damage Waiver is no longer appliciable & you could find yourself paying for all the damage, loss of use & adminstrative charges imposed by the car rental company.
My suggestion: ALWAYS in all situations you should use your own personal insurance policy to cover you when renting a vehicle…your policy follows you to any vehicle you drive & your insurer with represent your best interest & negoiate the repairs with the car rental company & only pay what the “law of the land” allows them to pay…NO stress for you! Plus, we have not even talked about when you are injured in a vehicle accident…your personal injuries are taken care of by your insurer also!
Make the investment, instead of paying $20.00 per day for Loss Damage Waiver…purchase coverage via your personal insurance policy for “non-owned automobiles”, this endorsement usually costs only $50.00 per year & will cover you anywhere in North America you travel…it acts as an extention of your personal policy…ask your agent for details.