Do you plan on renting a car soon but don’t know how to go about getting car rental insurance coverage from the right source? This article is for you.
In this post, we’d be addressing;
- Firstly, the major types of car rental insurance that exist and,
- The various source channels to acquire a car rental insurance service from.
GUIDE TO UNDERSTANDING TYPES AND SOURCE CHANNELS OF CAR RENTAL INSURANCE.
Table of Contents
Types of Car Rental Insurance.
According to Allianz, there are basically four(4) types of car rental insurance policies. They are:
- Collision (and/or Loss) Damage Waiver (CDW/LDW)– This is a rental insurance policy often offered by car rental companies that waives you of the responsibility of paying for the damage done to the rental car in your possession or in the case of its theft. However, take note that this waiver requires you to pay a certain amount of excess/deductible.
- Supplemental Liability Insurance (SLI)– As its name (liability) suggests, this gives coverage only for damages done to a third party involved in an accident with your rental car. Since it is required in most countries to have a liability insurance policy on your personal vehicle, be rest assured you are covered against that of a rental car as well – if you own a vehicle.
- Personal Accident Insurance (PAI)– This insurance policy includes coverage for your medical needs and/or that of the passengers in the rental Auto.
- Personal Effects Coverage (PEI)– This is a policy that covers a certain price limit, the loss or theft of your possessions from the rental car.
It is important you know these types of Auti rental insurance policies and also review through other current insurance policies you have to ensure you don’t pay more than is necessary at a vehicle rental insurance source-channel.
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Source-channels of Car Rental Insurance, Explained.
There are majorly five channels through which you can acquire a Auto rental insurance plan. Some of these channels might offer similar coverages as regards a rental car service and it is important you are aware of these channels so as to not get
- A Car-rental Company Insurance:
This is a rental insurance policy that you get at the Auto rental counter. Here, the Vehicle-rental salesperson offers you the terms and conditions surrounding their insurance policy before renting out their vehicle to you. Auto rental companies often tend to charge more than is necessary on their rental insurance rates. It is often not the best source of getting a rental insurance policy.
- Independent Car-rental Insurance Companies:
These are third-party insurance providers that offer a standalone policy covering rental cars. They offer a range of coverage that includes the collision-damage-waiver, supplemental liability insurance, personal accident insurance and personal effects coverage. They offer very budget-friendly rental insurance price rates for more coverage. Also, they are often the best Auto rental insurance source-channel to look out for. Examples of such third-party insurance companies include allianz.com and bonzah.com.
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- Travel Insurance:
This consist of a comprehensive policy offered by travel insurance agencies in countries such as the USA or Canada that includes coverage for the cars you rent while travelling. A good example of such is kayak.com.
- Your auto insurance policy:
If you own a car and have an insurance policy for your car, it is strongly advised you review your existing insurance policy details and conditions in order to know what and what not you are already covered against. Some personal vehicle insurance policies cover some risks attached with rental cars and it is important you know these covers so you don’t end up wasting money by purchasing another cover somewhere else.
- Credit-cards:
If you reside in countries like the USA or Canada, it is most likely your credit card already has insurance coverage for rental cars. It is however necessary you review and confirm the extent of the policy before proceeding with a rental car service as some rental car companies require a must-have certain coverage on their rental cars – hence the need to be informed of what you are already insured against.
In summary, getting familiar with the types and the different source channels through which you can get your rental car insurance policy goes a long way to helping you make an informed decision when paying for any Auto rental insurance policy. Hence, it is important you get yourself with this knowledge before fishing out for rental insurance plans.
For information on how to get a cheap car insurance rate, check out our article on How to Get the Best Cheap Car Insurance.
