All About Rental Car Insurance
In today’s fast-paced world, a car has become an absolute necessity to travel from one place to another easily. However, owing to the expensive prices of cars, there is a high chance that it can become difficult for many people to afford to buy a new car. To deal with such a situation, many people now prefer renting a car. Rental cars, yes you have got us right! A rental car is not just inexpensive but also a great way to save a lot of money on the repair and maintenance of the car. All you need to do is just fuel your car, and rent a car for days or months as per your requirement. Moreover, even though you rent a car, rental car insurance plays a huge role. So, in this blog, let us walk you through all about rental car insurance.
What is Rental Car Insurance?
Just like a usual car insurance policy, a rental car insurance plan is extremely important to protect your rented car against any uncertainty that may arise on the road. However, it is crucial to understand that the benefits and working of rental car insurance are different from any other car insurance plan.
Coverage in Rental Car Insurance Plans
The coverage in a rental car insurance plan varied, so listed below are the different types of coverage offered under the same:
- Theft Protection: There is a chance that your car gets stolen in case you have wrongly parked it or on any other occasion. To overcome such a situation in the case of car rentals, a car rental insurance plan can become extremely important that will protect your car whenever it is stolen or damaged during the same.
- Collision Damage Waiver: A Collision Damage Waiver or CDW cover is meant to provide coverage in case your rented car is damaged. However, with the Collision Damage Waiver, you can get protection only against bodily damages and not against the different parts of the car such as the battery, engine, gearbox, tyres, or anything else. Also, note that, if the rented car is damaged due to harsh driving or under the influence of alcohol, then there is no coverage offered.
- Third-party Cover: As the name suggests, a third-party cover for rented cars offers protection in case a third party is injured or any property of a third party is damaged. In India, a third-party cover is a mandate for vehicle owners. You can even add another cover, Supplemental Liability Insurance, to further enhance the coverage for third-party liabilities.
- Personal Accident Cover: If any individual sitting inside the rented car gets injured due to a car accident, then a Personal Accident Cover will provide assistance for this.
- Roadside Assistance Cover: A Roadside Assistance Cover is a type of coverage that is provided in case the rented car breaks down. This cover is also provided if the rented car runs out of fuel and you want immediate assistance in getting it refueled.
Things To Check Before Buying Rental Car Insurance
There are certain things you need to consider before buying rental car insurance. Listed below are some of the things to consider:
- Coverage Limit: It is important to check the maximum coverage limit of rental car insurance plans so that you are aware of the maximum protection that you can get. In case you raise claims greater than the coverage limit, then you will have to spend from your pocket as well.
- Deductibles: In case there are deductibles in your car insurance plan, then you will have to pay a partial amount from your end as specified under the policy. So, make sure to check the deductibles in your existing rental car insurance plans.
- Coverage Options: As the coverage offered under any rental car insurance plan varies from insurer to insurer, it is important to check the coverage offered under such plans. You can also speak to your insurer regarding this.
There are certain loopholes in rental car insurance plans that you might need to understand. There are many car rental companies that charge you if you return the car in a damaged condition, which generally results in you paying extra. Moreover, the Collision Damage Cover offered is also priced higher.
Benefits of Buying Rental Car Insurance
Whether you are buying a new car or simply renting a car, having a car insurance plan becomes extremely important. Rental car insurance not just protects you against uncertainties but also ensures that you can enjoy a hassle-free trip even when you have rented a car. You can explore a number of rental car insurance plans online to pick the best one.
Thus, in case you are planning to rent a car, then make sure to purchase rental car insurance as well. In case of any further doubts about the rental car insurance plans, you can easily contact us at InsuranceDekho.