There are a plethora of options out there in the rental car industry. These options are the conventional rental services, the membership-based car-sharing services, as well as the peer to peer services. With so many options, the insurance coverage conversation becomes complicated besides giving people numerous choices and better rates. Each car rental service has its requirements and regulations which will, in turn, dictate the kind of insurance policy you can purchase to get sufficient coverage.
When it comes to rental car insurance, compliance with the law is particularly confusing for owners and users of the car rental services. People will usually worry about their auto insurance being adequate when driving a rental car wondering if they need to purchase additional insurance coverage to be in compliance with the law. Additionally, you want to find the right mix of coverage. Should the rental car owner be covered all round to avoid assuming personal liability if anything happens?
There are many different options and policies when looking for rental car insurance. The wide range of policies will cover all the different situations and also vary depending on the total amount of insurance coverage you want to take out. You need to undertake extensive research and navigate through hurdles to obtain an aptly matched rental car insurance policy to meet all your needs. Surex will guide and help you through the entire process of finding and buying rental car insurance.
Rental car insurance majorly falls into two major categories – primary and secondary rental car insurance categories. The difference between the categories lies in when each type of insurance comes in handy to protect you – either as the first layer or as the supplemental layer of protection.
When you take out car insurance, it serves as the first and primary layer of insurance coverage in protecting you when driving the rental car. Alternatively, you can offer collision damage waiver so that it acts as the primary level of insurance coverage. Collision damage waiver usually covers any type of damage that occurs if an accident occurs. Collision damage waiver has the advantage of preserving your car insurance and preventing the tainting of your driving history. The downside is that collision damage waiver is expensive and costs your clients anything between $20 and $30 in premiums per day. Even though it is expensive, you may not have other choices if you are looking to keep your monthly premiums at the lowest possible to avoid having your driving history tainted. With collision damage waiver, claims are not filed using your car insurance. The history of the rental car will be prevented from affecting your monthly car insurance premiums over in future.
A second option is the supplemental liability insurance which when taken for rental cars will also serve to prevent claims on your car insurance. By offering supplemental liability insurance, rental car clients have primary insurance coverage for any liability rising when other people get injured. It is charged independently and in addition to collision damage waiver which effectively adds $15–20 daily to the total bill payable by the client.
The second category is the secondary rental car insurance. This category is typically offered by credit card providers and comes in to offer extra coverage to primary rental car insurance. It will offer coverage over and beyond what is not covered after the deductible is settled out of your primary policy coverage. Always ask your rental car clients to confirm if their credit card providers are offering any insurance coverage or about the car insurance policy that they already have. By knowing the amount and what is covered by all these insurance policies, you can make an informed decision on whether to purchase extra car insurance for the car rental.
People renting out their cars can benefit from the following get coverage options from Surex:
- Loss Damage Waiver (LDW)/ Collision Damage Waiver
LDW is majorly used to protect car rental clients from personally bearing any personal responsibility if the rental car is involved in an accident or stolen. Collision damage waiver will also cover the loss of use whereby the rental car company continues charging for the period of time the accident-damaged car is being repaired. LDW will also take care of towing fees for the rental car.
- Liability Insurance
The regulations put in place require that car rental companies offer the minimum mandated amount of liability insurance coverage. Typically, people who already have car insurance and with higher liability limits are usually sufficiently covered. If you happen to rent cars frequently, you should go for a non-owner car liability policy so that you have additional liability coverage to be safe at all times.
- Personal accident insurance
This insurance policy covers the driver and any passengers for medical bills that may arise after the occurrence of an accident. The policy will cover medical bills and other associated costs.
- Personal effects coverage
This policy offers protection for theft of personal items that may have been carried in the rental car at the time. Personal effects coverage will protect valuables such as mobile phones, laptop, and jewelry.
Car rental clients should check to see if their car insurance policy will cover car rentals so as not to purchase any other coverage offered by the rental company. Some car insurance policies will not offer coverage for all the different types of rental cars. Special insurance policies are required for pricier types of cars such as convertibles as well as large SUVs. Other policies will out rightly spell out covering motorcycles, pickups, trucks, and vans. The rental car company can choose to provide mid-sized cars to serve your clients’ needs since it will help in avoiding additional insurance coverage and associated costs. To remain competitive in the industry, car rental companies will usually take the minimum possible to keep their rental car rates low and remain competitive.
Car rental companies should provide comprehensive information to help renters fully understand their options. It helps to know if you are fully covered by existing coverage and the available rental car insurance coverage options. Providing car renters with an opportunity to read and comprehend the car rental agreement allows them know all that is covered and the need for supplemental coverage. Always avail a representative to guide clients through car insurance policies when they come to rent a car.
You must maximize the already existing car insurance coverage so as to avoid incurring additional costs.