The majority of people who do not have their own car opt for the rental car service with confidence and ease. But few know how it works and what the insurance package is for a company that provides car rental services. As car rental insurance works differently compared to normal car insurance, in order to drive, the rental car comes with a basic package with three types of protection, and the way they work varies.
If you want to be informed about the insurance package of a rental car, then this article will be useful for you.
Any rented car needs a basic package, which includes three types of protection:
Partial collision insurance with deductible - coverage of damages;
Theft insurance - cover in case of theft;
Liability insurance - third party coverage.
Collision partial insurance (CDW) is a minimum coverage against damage to a car and protects you if the bodywork sustains any damage. As a rule, Partial Collision Insurance almost always involves a deductible - the part you have to pay in case of damage to the bodywork.
The deductible may vary depending on where you decided to rent from, the rent a car company and the car model, but in most cases it is between EUR 600 and EUR 3500.
Another important criterion is that Partial Collision Insurance only covers the body of the car, and if damage has been caused to the windows, wheels or interior of the car, you will have to pay the full cost of repairing them and all administration fees , unless you have purchased additional insurance.
Theft insurance is cover if a rental car is stolen and repairs the damage caused by a thief who tries to steal it. As a rule, Theft Insurance almost always has a deductible - the part of the bill that you will have to pay if the rented car is stolen or suffers some damage in the circumstances of an attempted theft.
The cost of the franchise can vary depending on where you decided to rent from, the rent a car company and the car model, but in most cases it is between EUR 600 and EUR 3500.
In some sources, you may see the combination of Partial Collision Insurance and Theft Insurance specified as - Collision and Theft Insurance.
Liability insurance is a cover in case the renter causes some damage to the rented car or to a person, following a possible car accident. There is normally a limit to the value that Liability Insurance covers and it does not cover the car itself.
In the case of this type of insurance, there is no deductible.
Additional insurance is an optional alternative that you can buy when you decide to rent a car, as it insures the rented car and covers the deductible, which means that you will not be the one to bear the expenses for repairs.
Additional insurance is a customer choice and is not a legal obligation.
Additional insurance when renting a car can be done in three ways:
Adding the insurance when you book the desired car online. When you buy this type of insurance, you will first pay for the repairs to the rental car company, and then you will claim your money back from the insurance company you bought the policy from.
Individual purchase of car rental insurance online, also known as deductible protection insurance. When you buy this type of insurance, you will first pay for the repairs to the rental car company, and then you will request a refund from the insurance company you purchased the policy from.
Purchase of insurance when taking over the rental car. The insurance provided is provided by the car rental company and covers certain parts of the car, apart from the body (engine, windows, tires, etc.) and in some cases will reduce the excess. In the case of zero-deductible policies, the deductible is completely eliminated and you will not have to bear additional expenses for what is covered by the insurance.
In conclusion, we can say that the insurance package owned by rental cars differs from the usual ones, and if you asked yourself the natural question why would these types of insurance be required for rent a car, in the form of additional fees in addition to the rate rental itself, the answer would be a simple one - it is the individual choice of the customer to guarantee the rent a car company the possible recovery of damages caused to the rented car.
27 Oct 2022 11:31