How does an insurance agent work when you rent a car - Rental car insurance is different from regular car insurance. In most countries, every rental car requires a standard package of three types of protection in order to be transported, but the way it works is different. Find out what there is to know about rental car insurance.
In most parts of the world, rental cars require three standard types of protection to drive: damage protection (commonly called Collision Damage Relief or CDW), Theft Protection, and third party protection (Third Party Liability).
1) Collision Damage Exemption
The standard damage protection of a car (commonly called Collision Damage Relief or CDW) protects you if the body of the car is damaged. Like most types of protection, Collision Damage Waiver always has an excess, namely the cost you have to pay to repair a damaged car body. The excess amount depends on where you rent, the rental company you use and the type of car, but is usually around £500/€600 and £3,000/€3,500.
Collision Damage Exemption only protects the car body. So if there is damage to the windows, steering wheel, or interior parts, for example, you will have to pay the total cost of repairs and administrative costs (unless you have purchased additional protection).
2) Theft Protection
Theft Protection (sometimes called TP) protects you if your car is stolen or someone tries to steal it. Thief Protection almost always has an excess, which is part of the bill you have to pay when your car is stolen, or damaged as a result of an attempted theft.
The excess amount depends on where you rent, the rental company you use and the type of car, but is usually around £500/€600 and £3,000/€3,500.
You may find 'Damage Indemnity Waiver' or LDW. It is a combination of Collision Damage Waiver and Theft Protection.
3) Third Party Liability
Third Party Liability (sometimes called TPL) will pay if you injure someone or damage something with your rental car. This protection does not protect the car itself. Generally the amount paid Third Party Liability has a limit.
What types of insurance are automatically included?
If you're from Europe or most other regions, damage, theft and third party protection are usually included in the price when you book a car. Collision Damage Waiver and Theft Protection have excesses. The excess is the first part of the payment for repairs or other costs. This is slightly different for drivers from the US or Canada.
Many North American drivers have credit cards that include auto cover for rental cars. So they can choose between a standard plan, which doesn't protect against damage or theft, or an inclusive plan, both of which are included. (Standard plan still includes Third Party Liability.)
Please note that all types of cover are tied to a rental agreement signed by the driver when picking up the car. If the driver violates the terms of the rental agreement, he must pay the full cost of all repairs, or replace the car if it is stolen.
Optional insurance that tenants can purchase
You can choose to purchase extra insurance to cover excesses (meaning you don't have to pay anything for repairs) and insure the rest of the rental car. This is not legally required, so it's up to the tenant whether they want to buy extra insurance or not.
There are generally three ways to add extra insurance to a rental:
1. Add insurance when you book a car online
Many rental car sites, including Rentalcars.com, sell their own type of cover. They are all different, but most likely all protect the parts of the car other than the body (windows, tires, engine, etc.) and/or reduce excess.
If you buy this kind of coverage, you usually have to pay for the repairs to the rental company first, then claim the money from the insurance provider you purchased.
2. Buy rental car insurance online independently
You can buy insurance from a different insurance company. There are several online options specifically designed for rental cars. This is usually referred to as 'excess protection insurance'. If you buy this kind of coverage, you usually have to pay for the repairs to the rental company first, then claim the money from the insurance provider you purchased.
3. Buy protection when you pick up a rental car
Rental companies also offer additional protection at their counters. The price, name, and type of insurance are different for each company and where you rent. This insurance will most likely cover the parts of the car other than the body (windows, tires, engine, etc.) and/or reduce excesses (the amount you will have to pay in case of a problem). The 'No excesses' policy eliminates excesses completely, so you don't have to pay anything for everything protected.
9 easy tips for car rental
By renting a car on the go you can set your own pace. Discover quick and easy tricks so you can enjoy the fun and freedom of renting a car without the stress.
1) Book a car before leaving
We recommend that you book a car once your trip is confirmed, to avoid last-minute price increases and to get the type of car you want. If you're going on a spontaneous trip, booking a car the night before can also save you money. Online reviews can help you choose a good company. Like airlines, car rental companies can also vary. Some brands offer low prices but the service is not very good. While others pride themselves on offering high quality cars and good customer service, and their customers are willing to pay more.
2) Choose the right time
Choose a pick-up and drop-off time that gives you enough time. Many people don't realize that a rental car will not wait if they are late. If you're arriving by plane, allow at least an hour to go through passport control and collect your baggage. If you're arriving by plane in high season, allow more time just in case.
If you are going home by plane, book a return time about two and a half hours before your flight time. Rental companies charge late fees, so allow plenty of time for return trips.
3) Share the burden of the trip
Driving a car in another country can be more complicated than in your own country. The different speed limits, road markings and rules can be surprising. If you are traveling with other people, it is recommended to pay a little extra for an additional driver, so that two (or more) people can take turns driving. By taking turns driving, everyone can rest and enjoy the scenery.
4) Understand insurance well
Rental cars usually include basic protection, but do not include protection for all parts of the car. If you want more coverage, you can buy it when you book the car, buy it from an insurance provider, or buy it from the rental company staff when you pick up the car. You decide to buy more protection or not. However, make sure that you understand exactly what is protected (and what is not). So if something goes wrong, you won't get any expensive surprises. To learn more, see How does insurance work when you rent a car?
5) Read the info, bring the letter
No one likes to read important information, because the holidays are a time to have fun. However, you should make sure to read carefully about what you are buying, to avoid any possible problems. If you book online, you can find the car Terms & Conditions on its website and on your booking confirmation. So you can read it in peace at home before leaving.
When you pick up the rental car, the staff at the rental counter will check the paperwork and take payment for the security deposit on your credit card. You should definitely bring your driver's license, credit card and other proof of identity. You may also have to bring other documents with you, so check the specific rental Terms & Conditions before you go. To learn more, see What's needed when you pick up a rental car.
6) Understand the costs
By comparing rental car prices online, you can get a good price. However, there may be a fee to be paid later when you pick up the car. If you understand the cost for any extras you want, such as an additional driver or a one-way trip, you'll have an idea of the total rental cost before you go. You can find the cost of any extra in the rental Terms and Conditions. To learn more, see Recognizing extra costs in car rentals.
7) Don't stick to one type of car
Some people don't realize that when they rent a car, they are not renting a specific type and model of car. In fact, rental cars are rented on 'or similar' terms. This means that you can get a car of similar size and specifications to the one you ordered. So, no need to worry about whether you will get one type of car or something similar. You may get one, or the other. To learn more, see Choose the right type of rental car.
8) Consider extra equipment
Unfortunately, rental companies don't always guarantee you can get the extra equipment you want, such as a child or baby chair. So to avoid a last-minute crisis, it's best to bring it yourself. You will save on daily rental costs and be more confident about the quality. In addition, many airlines allow you to bring two items of baby or child equipment at no charge. If you are used to using GPS/sat nav in your own car, but don't want to pay the daily rental fee, you can use a smartphone. Just download a map of your destination before leaving.
9) No need to hesitate
When you are at the rental counter, don't hesitate to ask anything you don't understand. Make sure you understand how to return the car, its fuel policy, whether there are toll fees, or whether you will be charged any other fees.
After that you are ready to bring the car. Have a nice trip!
Thus a discussion of how insurance agents work when you rent a car, hopefully the reviews above are useful for all of you.