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Accident Insurance in Car Rentals

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By Edited Nov 13, 2013 0 0

Car rentals offer automobiles for renters from several hours up to weeks depending on the contract, which requires a fee. However, the most common concern of renters is their liabilities for the car they rented.

Car rental companies usually avoid accidents by ensuring that the person who rents the car is above 25 years old, although some states and countries may have different policies. In addition, a driver’s license is also needed to ensure that the one renting it knows how to drive. In case a car rental is made on an international destination, an International Driving Permit is usually needed.

The rented cars become the sole responsibility of the renter, so rental companies also require payments in case a defect is found on the car upon returning it or other miscellaneous fees for motoring related fines, tolls and missing petrol.

Since you are only renting a car, there is limited support to you in case you met an accident while you are using it. In the state of California, the sole liability relies on the renter or the driver, but some states are required by state laws to provide minimum liability coverage in case of accidents. If you are a renter, it is first good to know the policies regarding insurances when you rent a car in order for you to become knowledgeable on the help you may have in case an untoward event happened while using the rented car. Some states make it illegal to drive any car without liability coverage, so it is always best to have your own insurance. Some companies may provide the liabilities over their vehicles, but with certain additional fees for the renter in such case that the renter has no liability coverage on its own. The additional fees that come along liability coverage are usually optional. However, if you plan not to pay for these fees, you may become fully responsible for any damage to the vehicle, properties or life in case an accident may happen so it is better to have these additional costs. Several coverage include:

  • Loss damage Waiver

This fee covers the usual costs of damages to the vehicle you rented in cases of accidents.

  • Personal Accident Insurance

This covers the costs of accidental death or injuries to the renter or to the other members of the family while traveling in the rented car with the renter.

  • Supplemental Liability Insurance

This is an insurance sold in the US that covers costs of property damage or bodily injury to a person/people other than the renter and its passengers.

  • Personal effects Coverage

This fee covers the costs of damage or loss of personal belongings of the renter or other passengers traveling in the car with the renter during the duration of the rental.

  • Excess Insurance

Excess Insurance is usually paid by renters in Africa, Europe, Australasia, Far East and the Middle East. This fee is usually paid by the renter aside from the rental fees. Excess insurance saves insurers to cover the costs of minor damages on the vehicle rented. Renters or drivers usually claim for coverage even for minor damages, so to prevent this, excess insurance is also paid along with the rental fees. When the cost of the repair of the damage is lower than the excess insurance, the renter cannot claim for coverage. Despite presence of other insurance products, the renter is still obliged to pay the excess insurance. Excess insurances can range from 500 to 1,600 pounds.

Before renting a car, always check your insurances in order for you to reduce your liability in case an untoward event happened while using the rented car. 

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