Rental Car Insurance
A Insurance Article Contributed by Swapna
Why Do You Require Rental Car Insurance?
Rental car insurance is required to provide liability protection against theft, accidents and similar losses when you are driving a rental car. When you rent a car you become responsible for any damage occurred to the vehicle during the rental period. In the event of an accident you may become liable up to several hundred dollars depending on the extent of damage. Car rental insurance provides protection against such financial losses.
Rental car insurance may provide full damage protection or partial damage protection depending on the type of coverage you opt for. A variety of insurance options and schemes are available. It is essential to do a through research about the insurance market and the different options available before deciding on your rental car insurance plan and the extent of coverage required.
Rental Car Insurance Options
Before you purchase your rental car insurance it is necessary to know about the different types of insurance coverage available to you. Depending on your unique requirement you may choose the extent of coverage needed. Never compromise on the required level of coverage or you may not be adequately protected against financial loss in the event of any loss or damage while driving your rental car.
* Collision damage waiver (CDW/Loss Damage Waiver (LDW) - In case on an accident, this type of rental car insurance plan will provide for the full value of loss or damage that has occurred. The coverage will however become void if the renter commits a breach on his rental agreement.
* Personal Accident Insurance (PAI) - This type of rental car insurance provides coverage for death and medical expenses for the renter and additional passengers (if any) at the time of driving the rented car.
* Personal Effects Coverage (PEC) - This type of rental car insurance coverage provides insurance protection in the event of loss or theft of personal belongings from your rental car. By adequately equipping your rental car with safety equipment you may be able to reduce the cost of the insurance coverage.
* Additional Liability Insurance (ALI) - This is an optional insurance that you may or may not obtain while purchasing your rental car insurance coverage. This type of insurance plan offers protection against claims made by third parties in the event of accident involving your rented vehicle.
Factors to Consider before Purchasing Your Rental Car Insurance
Here are a few factors you should consider before purchasing your rental car insurance:
* Before purchasing your rental car insurance it is necessary to take time to study the insurance market. Understanding your specific requirement helps you to better judge your options in order to arrive at an informed decision.
* Check that you obtain your rental car insurance in conformity with your state laws. Check out with your State Department of Insurance incase you are in doubt with the type of rental car insurance that you require.
* Check out the reputation of your insurance lender.
* Check if your existing car insurance policy already provides coverage for rental car insurance.
