Insurance
Are you about to rent a car for a business trip, vacation, or other purpose? If so, you need to make sure you know what kind of car insurance you need. Not having the right car insurance can leave you in a difficult or even dangerous situation. In this article, we’ll explain what kind of car insurance you should consider when renting a car, so you can make the right decision.
Why Do You Need Insurance When Renting a Car?
When you rent a car, you are responsible for any damage or losses that occur while the car is in your possession. Even if the damage or loss is not your fault, you are still liable. That’s why it’s important to have the right kind of car insurance when renting a car. It can protect you from financial losses if something happens to the car.
What Kind of Insurance Should You Get?
When renting a car, you may be offered two types of insurance: liability insurance and collision damage waiver (CDW). Liability insurance protects you if you are found legally responsible for injuring someone or damaging someone else’s property while driving the rental car. CDW, on the other hand, covers the cost of damage to the rental car, up to the value of the car. It may also cover any towing or legal costs associated with an accident.
In most cases, you should get both liability insurance and CDW. However, check with your credit card company before purchasing the insurance. Some credit cards offer free rental car insurance if you use the card to pay for the rental. This can be a good option if you don’t want to pay for the insurance from the car rental company.
What Does Rental Car Insurance Cost?
The cost of rental car insurance varies depending on the type of vehicle you’re renting, the duration of the rental period, and the amount of coverage you choose. Generally speaking, you can expect to pay anywhere from $5 to $15 per day for rental car insurance. It’s important to shop around and compare different insurance policies to get the best deal.
What if You Don’t Have Insurance?
If you don’t have insurance when renting a car, you may be held liable for any damage or losses that occur while the car is in your possession. This could mean thousands of dollars in out-of-pocket expenses. It’s much better to have the right insurance in place before you rent the car.
What if You Have an Accident?
If you have an accident, the first thing you should do is contact the rental car company and your insurance company. Your insurance company will help you file a claim and will handle the details of the claim process. The rental car company may also be able to help with the claim process. Be sure to keep all documentation related to the accident, including photos, police reports, and repair bills.
Conclusion
Renting a car can be a great way to get around while on vacation or business trips. But it’s important to make sure you have the right kind of car insurance before you hit the road. Liability insurance and collision damage waiver can protect you from financial losses if something happens to the car. Shop around to get the best deal and make sure you have the right coverage before you rent a car.