When most people arrive at their vacation destination abroad, all they want to do is to enjoy their time there. However, renting a car can be a daunting task if you are not sure of how to fill the rental contract.
It can be very frustrating if you do not know which car insurance option to take. Sadly most travelers end up duplicating their coverage. So, here is everything you need to know about car insurance and rental car coverage.
Your Auto Policy
Your personal insurance provides coverage for damage you might cause with your rental car on other people and property. You should check if your auto policy covers rental vehicles. Your auto policy will extend to your rental car if you:
- Rent a vehicle of similar value to your personal
- Rent a car for short-term use (28 days or less).
- Rent a private passenger vehicle.
- Have the necessary auto insurance
However, if your holiday car is more expensive than your current personal car, consider taking coverage from the rental company.
Rental Car Coverage
Rental companies almost always offer the same type of coverage. It is important to double-check with your insurance company agent. No one wants to pay more money for what they have already been insured for. Most vehicle insurance policies have liability coverage, so you can skip this.
Personal accident insurance covers medical bills in case you are involved in an accident. If you have a personal injury coverage, you do not need to pay for this again. You will need coverage on Loss Damage Waiver. This waiver transfers financial liability from you to the rental company. Also get a Personal Effects Coverage. This will cover your personal property in case they are stolen from your rental car.
Make sure to read through your rental agreement, and especially the fine print.
Credit Cards Benefits
Some credit card companies provide secondary coverage. This means that they will cover some loss or damage on your rental car. Not every credit card company offers this service, so call a customer care representative, and get all the details first.
Before you head out of the door for that vacation, take the time to understand the above information. Call your agent and arrange for the necessary insurance coverage. Inspect your rental car for any damages and ask questions when necessary. Read the fine print before you sign that dotted line.
