Rental Car Insurance

A specialized rental car insurance policy can save you a lot of money. The biggest cost of car rental is most usually the insurance. Rental car insurance covers one in the event that a hired car is stolen or damaged. You can purchase the insurance from a rental car company or from a third party. Most insurance companies have the following the following covers; Third Party Cover, vehicle damage cover, vehicle theft cover and excess insurance. Some insurers offer full protection that includes accident related fees, towing charges, roadside assistance and damage related charges.

Once you hire a car, make sure before leaving the parking lot that you are conversant with the car and you have an insurance cover.

Cost of renting a car

In many places you can rent a car for 5 pounds a day. But that’s just the car. Loss Damage Waiver (LDW) or Collision Damage Waiver (CDW) insurance can easily end up costing more than 15 pounds a day. So, a dedicated rental car insurance can already pay if you’re renting 10 days a year. In case of any damages caused by collision or theft, there is a reimbursement of the actual cash value. Most of the private cars are eligible but there may be some restrictions. Contact the Benefit Administrator for inquiry.

Who is Eligible for Auto Rental Collision Damage Waiver?

For Auto Renewal CDW, you must be a Visa cardholder to get insurance coverage for any automobile you have rented. The name on the card should be the name of the cardholder who in this case must be the primary renter of the car.

Rental Cars Not Covered

There are certain classes of Auto Renewal CDW that are not covered. Among them include:

  • Expensive exotics cars such as Ferrari
  • Antique automobile (cars that are over 20 years)
  • Vehicles with open cargo beds
  • Vans with a passenger capacity exceeding 8
  • Trucks
  • Motorcycles
  • Limousines
  • Recreational Vehicles

Losses Covered

Apart from fixing damages on a rental car, there are many advantages of buying a CDW . A CDW covers the following losses.

  • Damage and theft of the covered rental car
  • Towing charges to the nearest repair facility due to damages or theft of the car
  • Loss of use charges by the rental company
  • Diminished value. This is the loss in the value of the car due to the damage
  • Administrative fees accruing from the claim process

Most insurers will cover extra costs apart from damages that the car will experience. However, it is not always a guarantee that the extra costs will be covered since this depends on the cooperation from the insurer.

It is important to note that these benefits only cover the rented car for the rented period that does not exceed 15 consecutive days within your country of residence and 31 consecutive days out of your country.

How to Tell if CDW Benefit is in Effect

Once you have rented a car, follow these steps to know if CDW benefit is in effect.

  • Make a rental transaction using your Visa Card
  • Do not accept any Collision Damage Waiver from the company or any other similar provision
  • Before leaving with the rental lot, make sure to check if the car has any damages
  • Carefully review the rental agreement to ensure that you have declined the (CDW/LDW) and to familiarize yourself with the terms and conditions.

Types of Rental Car Coverage

The following are the things that the insurer covers:

  • Loss. The insurer covers the damages cost in case the car gets involved in a crash or if it is stolen. Besides, the insurer covers the rental company for any profits it is likely to lose during the repair period.
  • Liability. The rental insurance also covers damages to other vehicles or property that may have been caused by the rental car. This can also include the medical expenses for people outside the car who may have been hurt.
  • Personal effect coverage. It covers the loss or damage of your personal effects in your rental car.
  • Personal accident insurance. It covers your medical expenses and those of your passengers that may have been hurt during the crash.

When to Report an Incident?

In case of damages or loss of the rented car, you must report as soon as possible but not later than 45 days since the day the incident took place. Taking a CDW does not give you the right to be reckless with the rental car. You must protect the car from theft and damages. But just in case of an incident, please report to the Benefit Administrator immediately.

If you report the incident late, the Benefit Administrator has a right to deny charges and losses accruing for the period when the incident had not been reported.

Documents Necessary when Making a Claim

Request the rental company to provide you with the following documents:

  • A copy of the accident report and a claim document
  • A copy of the rental agreement
  • A copy of repair estimates of the car
  • A police report
  • Two photographs of the damaged car