When you rent a vehicle or car, you will be surprised at the amount of taxes and charges you pay in addition to the cost of rent. At the time of departure, you will be asked if you want to have insurance for your rented car or not. This question can be expelled if you are not ready because the leasing agencies look good as if you need coverage to save thousands of dollars in case of an accident. Do you need this coverage or is it simply an additional cost to put more money in the owner’s pocket?
What is covered?
The answer to this query begins with an understanding of what it implies. This varies from one owner to another, but there are some similarities with these insurance policies. There are four basic types of coverage: compensation, liability insurance, accident insurance, and personal coverage.
The claim covers your liability for damage to the vehicle in the event of a collision. This is not an insurance product because it does not pay for the damages. Instead, as a tenant, you are responsible for the damage, even if it caused the accident. The owner’s insurance takes damage to the car. To waive some exceptions, z. Like accidents for driving off the road driving drunk or driving very fast. This exemption also protects you from paying for the loss of use suffered by the rental company when you repair your car. This is the reasons why you need to have insurance when renting a vehicle;
• The car rental is automatically secured with civil liability insurance, this is required by law. The protection is sometimes minimal. Since most drivers need more responsibility than the vehicle, the leasing agencies offer liability insurance.
• If you or your passengers got injured in an accident while driving, your health insurance might cover your medical care. This is very affordable to add your policy. However, you probably do not need them if you have health insurance.
• The personal coverage of personal belongings, the last type of coverage, is paid against any theft of the items transported in the rental vehicle. Keep in mind that you are likely to ensure that the owner or tenant covers the theft of personal property while traveling.
Do you need insurance when renting a car?
Before signing an insurance policy at a vehicle rental company, make sure you need it. Some insurance products that you already own may cover the same things that these insurance products cover. Call the insurance agent to find out what kind of insurance coverage you have when you rent a car. If you have a collision and you have extensive coverage, you may already be insured for the lease. However, in case you only have liability insurance, you can consider getting compensation for an additional cost when you rent a car. When you call your insurance agent, you should find out if the costs of detention, removal, and administration are covered if the vehicle fails or got in an accident.
Another place to look for an existing coverage is with your credit card company. Many credit card companies that offer incentive programs automatically insure the rental of rented vehicles with this card. This coverage is usually only for the leased vehicle, not for people or other vehicles on the road. However, this insurance coverage may be adequate along with your liability insurance and health insurance.
If, after reviewing these two sources to rent a vehicle, you feel that you are not adequately covered, you should consider contracting the insurance. While an accident is not out of the question while driving a rental car, it can happen, and if you do not have enough insurance, it will end up costing you an expensive expense that you had not planned for.