Many people in their lifetime end up renting a car. Whether you are going on vacation or in the process of buying a new car, car rentals can be a useful thing. But one thing that a lot of people worry about is what kind of auto insurance is going to be covering their rental. And should you buy car rental insurance directly from the car rental place?
The most common form of car rental insurance is called a loss-damage waiver(LDW) which is sometimes also called a collision damage waiver(CDW). When you buy this kind of waiver, the car rental company can’t come after you for the most part for damage to the car. This kind of insurance can give you the most peace of mind, but it can also be expensive as well. Liability coverage is another form of rental insurance and it covers other people’s damages from accidents that are your fault. Personal accident insurance is another kind of rental insurance. This insurance covers medical bills for your passengers and yourself no matter who causes the accident. This kind of insurance is similar to personal injury protection. Personal effects coverage covers damages to personal possessions like your devices or your apparel.
Depending on the situation, car rental insurance from certain car rental companies can be considered expensive. There are alternatives to covering your rental car. One is just using your existing car insurance. As long as the purpose of the trip is for personal travel, you can just use your regular car insurance. Your existing coverage limits and deductibles would apply. There are risks and limitations that come with using your existing car insurance. It is important to check with your policy provider to make sure that your coverage is what you want. Typically you would not be covered outside the United States depending on the coverage. Also if something potentially happens then your car insurance would still go up as well.
Another alternative is using the coverage that your credit card may or may not provide. Many credit cards provide free collision coverage if you use the car for the rental. It is important to note that most cards only provide secondary coverage which means that it would only pick up what your own insurance doesn’t cover. You must pay the rental company upfront and hope that your card will reimburse you. Also, many credit cards only pay for claims if it is verified by the rental company’s log. This can be hard to obtain at times. 3rd party rental insurance is also another alternative. It can be cheaper than insurance from the rental company, but like credit cards, you have to pay upfront and then get reimbursed.
Have you been injured in an accident involving a rental car? Call the auto accident attorneys at Hurst Limontes LLC, today. (317) 636-0808.