If you’re renting a car, you’ll also be faced with a number of options relating to car rental insurance cover.
In many countries, particularly those in continental Europe and the UK, you will probably find that some elements of car insurance are included in the rental cost. The nature of these may vary between rental companies and countries but it is not unusual to see a basic form of third party liability, theft and collision damage waiver (usually abbreviated to CDW) included in the car rental insurance cover that comes ‘in the price’ with the vehicle.
This means that you will have some cover against any injuries or damage you cause to someone else with the rented car. You will also have some cover against theft of the vehicle while in your care and CDW provides insurance against damage to the car you’re renting.
In a few countries such as the USA, the basic rental price may in fact include virtually no insurance. All car rental insurance cover in such situations will need to be purchased by you separately.
If you do not have these types of insurance in place, or you incur damage or costs not covered by them, you will be expected to pay directly. So, it may be advisable to ensure that these types of insurance are in place and adequate for your needs. Things to check may include
- Does the third party liability cover offer sufficient monetary protection to cover your costs given the large awards a court may make to someone injured by you when driving?
- Does the CDW portion cover all areas of the rented car or does it exclude (as the basic car rental insurance often does) damage to areas such as the wheels, tyres, roof, undercarriage and windows? If it does exclude these areas and they are damaged – you will need to pay.
- Does the policy carry excess? The excess is a financial amount that you will be expected to contribute towards the costs of any claim and it is typically set between 500 and 1500 pounds.
If you are unhappy with any elements of your basic cover as outlined above, you do have the option of increasing or ‘topping-up’ your insurance to cover excluded areas of the vehicle or reducing the excess payable etc. This ‘top up’ insurance can be purchased from the car hire company but you may find this to be an expensive option.
The direct insurance companies that sell various forms of car rental insurance cover online provide an alternative and usually much cheaper option. These companies can provide insurance that will reimburse you for any excess paid to the car rental company; cover areas of the vehicle excluded from the hire company’s insurance and increase the amount of third party liability cover available.
Car rental insurance cover purchased from direct insurers also offers another major advantage. As it is sold to you as a policyholder (the cover can be purchased on a daily or annual basis) it will cover any vehicle rented by you during the life of the policy – subject to terms and conditions etc. If you’re looking to save money and improve your insurance cover, it is an option that may be worth checking out.