A Guide to Rental Car Protection Insurance

It’s wise to drive a car with insurance because you never know what may happen on the road. The same is the case with rental cars, thinking of all the potential damage causing frustration, anxiety, and financial distress. There is nothing that ruins a well-planned corporate trip more than an insurance claim. Because when you rent a car you are 100% liable for all damage to the car by default. It could be claimed over an accidental dent on the door or simple blame for slight damage missed in the inspection.

Hence, while renting a car, it’s important to know what rental car protection insurance is covered in the rental package and what kind of insurance coverage you will need to purchase separately. Usually, rental cars have basic liability insurance in your rental package. Whereas it is a better idea to go through the rental car protection insurance so that all your needs are covered rightly. We have designed a guide to rental car protection insurance to let you know what you need to know.

Discussing the insurance before rental

Just in time for deciding on the rental car, you should talk to the rental car company about the insurance coverage. You may also consult with other local insurance companies to explain comprehensively the costs of regular and additional insurance packages. In case you are in Karachi and looking for the most reliable rental car insurance that will give you the necessary details. They will also warn you that in case of skipping the insurance clause you will be responsible for any potential damage.

Whether you need car insurance or not?

The thing to keep in mind while determining whether you need rental car protection insurance or not is the insurance policy. You must see what insurance policy you have at hand and what it covers. Sometimes the insurance coverage of your personal vehicle may be enough to cover the costs of insurance of the rental car, for that you can contact the insurance company to have the needed information.

In another case, credit card companies also have some kind of insurance coverage. These companies allow you such perks when you pay the rental with a credit card. They have all the information, requirements, and regulations, so you may contact them. Lastly, you should also consider your personal liability limits. If your personal auto insurance, or the policy has low liability limits, you would want to purchase additional rental car coverage to protect yourself financially in any road mishaps.

Loss-Damage Waiver and Collision Damage Waiver:

A loss-damage waiver also called a collision damage waiver saves you in cases of damage to the rental car or theft of the rental car. Technically it is not insurance but a waiver that protects the rental car company from coming after you. Like if you have a collision and have comprehensive coverage on your own policy, it might extend to a rental car, but you need to have this discussed with your insurance company.

However, you will still be responsible for your deductible, and filing a claim on your auto insurance policy could raise your premium. But if you do not have a regular policy, or you’re renting in a location where this coverage is ineffective, you would have to compensate for the damage unless you buy the LDW.

Also, the Collision Damage Waiver shall not be covering the vehicle for water damage, undercarriage, tires, headlights, windscreen, wind damage to the doors, or negligence and is obviously void if you are found to be driving in an unconscious state of mind. Therefore, make sure you read thoroughly the rental car protection insurance terms carefully

Personal Effects Coverage

You can have an optional add-on to your rental car protection insurance and personal effects coverage. This enables you to protect your personal belongings in accidents or in other mishaps which damage them or are stolen while in your vehicle. Whereas you should keep this in mind while considering the personal effects coverage.

Firstly, this coverage is typically limited to a certain amount. This means if the stuff is worth more than that limit then you may not be fully covered under this policy. Secondly, that personal effects coverage is usually applicable to necessary items. It may include clothes, phones, and laptops. Luxury items such as jewelry or art, are typically not fully covered.

To put it all together, rental car protection insurance is a lifesaver, but it is also important to keep in mind what things the policy covers. As aforementioned, before you hit the road make sure you are well aware of the terms of your rental agreement and your personal insurance policy.

If you have any queries, questions, or doubts, you must not be reluctant in calling your insurance agent or the rental company. Rental car protection insurance is an essential part of traveling, and it is our utmost duty to lift the burden off your shoulders and make your trips carefree, full of excitement and adventure.