Renting a car seems an easy task to undertake. This is not true until you know what rental and car insurance entails. Just like in other vehicle instances, rental cars also require auto insurance. This is referred to as car rental insurance. In most states, rental and car insurance is very important area to consider. This is because the laws state that it is mandatory for all vehicles to carry auto insurance, including car rentals.
Auto insurance covers a wide area. Most people think that auto insurance is only meant for cars owned by individuals and not those for rent. Rental and car insurance are very important in any state. Accidents and calamities make no choice of vehicle. This means that even rental cars are at risk. This way, all need coverage in case any kind of mishap occurs.
Rental and car insurance is as important as insurance for any other vehicle. In most states, insurance policies provide coverage for car rentals. Car insurance is mostly purchased by people. This is because it is mandatory in any country to drive with proper car insurance. This insurance is usually provided with various coverage types. In most cases, these coverages apply for car rentals. Rental and car insurance thus go in hand.
Credit cards also provide rental and car insurance. Most companies dealing with credit cards provide free auto insurance benefits for users. This applies when one charges the rental cost on the credit card. In other cases, this might not be free but the deals are usually better compared to purchasing from the rental agency. It is advised to be very keen with credit card rental and car insurance. This is because the deals vary from company to the other.
In case where the insurance policy or credit card doesn’t provide coverage for rental cars, then one can purchase rental and car insurance from car rental companies. This insurance is usually provided at an extra fee that is met on daily basis. It is thus important to consider car rental insurance before hitting the road.
With agency rental and car insurance, there are various waivers and insurance types provided. These are meant to increase a person’s protection and help them financially if an accident occurs. Very good examples of waivers are the Loss and Collision Damage Waivers (LDW and CDW). These waivers provide coverage in case the rental car is stolen, vandalized or involved in a collision. Both LDW and CDW rental and car insurance waivers combine the roles of both comprehensive and collision coverages.
One thing to understand with rental and car insurance waivers is that they are not insurance products. These are not sold or underwritten by any insurance companies. As said earlier, waivers are meant to take place of collision and comprehensive car insurance coverages. When you already have comprehensive and collision coverage, it is not necessary to go for these waivers since they are the same.
Additional liability insurance is also provided with rental and car insurance. This liability insurance is important when a person has low liability limits. To free the worry, this additional liability insurance is provided by car rental agencies at a fee. In most States, this liability is managed at an extra fee of between $7 and $14 a day. This liability provides up to $1 million coverage in case of accidents.