How Does the Insurance Work When Renting a Car?

Rental car insurance has its own characteristics and differences from regular car insurance. Most rental companies use a basic package of several types of coverage, but the rules vary. Read on and get valuable information about how insurance works when you rent a car.

Car Rental Insurance: Basic Types and Their Characteristics

There are three main types of coverage in car rental:

  • Insurance covering expenses in case of an accident;
  • Theft protection insurance;
  • ●      Third-party liability coverage.

Collision Damage Waiver

This is the most popular type of coverage. It provides protection in case of an accident. Like most types of insurance, Collision Damage Waiver has a franchise. The renter needs to pay for repairs if the car`s body is damaged. The franchise amount varies depending on the type of vehicle, rental location, and company. Usually, it is 600-3500 euros.

Theft Protection

This type of coverage is applied in case of theft of a rented car. It also covers the cost of attempted theft of a vehicle. Theft coverage includes a franchise of 600-3500 euros.

Third-Party Liability Insurance

Such insurance is aimed at cases where you cause damage to someone while using a rented car. At the same time, damage to the rented car is not covered in this case. In addition, there is a limit on payments under Third Party Liability Coverage.

Tips for Choosing Insurance When You Rent a Car

Before choosing insurance, find out on the company’s website or from the rental manager what is included in the cost of car rental. In some rental services, the basic Collision Damage Waiver is already included in the rental price. At the same time, it may not cover minor damages (glass, scratches, etc.). When returning the vehicle, a certain amount of money may be debited from your credit card for this. Thus, getting an extended version of the insurance may be appropriate.

Before processing the documents, be sure to find out what risks are covered by the rental car insurance you have chosen. We strongly recommend you clarify this issue in advance, as the conditions of different rental companies vary. Thus, Collision Damage Waiver can only cover damage from an accident. Other types of damage may not be covered—for example, animal attacks, natural disasters, falling objects on cars, etc.

Treat the choice of insurance when renting a car responsibly. And be sure that you will not have any problems!

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