Rental car insurance disturbs anyone who wants to rent a car abroad. We want to know, which insurance is required, which is optional. What is an insurance deductible and why your deposit is frozen, when renting a car? Moreover, it is necessary to know, what rental car insurance to choose. Read about it farther.
Types of rental car insurance
1.Basic car insurance deductible (mandatory).
2.Full insurance without deductible (voluntary).
When you receive an ordered car, you will be asked if you want to cancel the deductible by buying full insurance (voluntary insurance). Full rental insurance reduces your liability during the rental period to zero, subject to the terms of the rental. The cost of full insurance depends on many factors: make and model of the car, type of engine, mileage, year of manufacture and insurance company. Therefore, in advance, before receiving the ordered car, there is no way to find out its precise cost.
When you receive a reserved car, the dealer will announce the cost of full insurance for this particular car (if you want to take it). However, full insurance from the rental agency is quite expensive (50% of the cost of renting a car) and it does not cover the damage to the following parts of the car:
- wheels and rims
- car glass
- mirrors and headlights of a car
- bottom and roof of cars.
Advantage of full insurance: having sold you additional insurance, the provider (in most cases) will not freeze the deposit for the rental period.
3.Rental car insurance deductible (voluntary).
This is a compromise option when you do not want to spend a lot of money on the purchase of full insurance from the rental agent, but in case of damage to the car - do not lose money on a deductible. This insurance can be bought immediately after booking a car, when you know the rental dates. Other data for the policy is not needed.
This insurance covers all possible damages to the rental car.
It also covers:
- car evacuation
- car lay-up due to damage
- key loss
- all additional costs for various examinations.
A big advantage of this insurance is that it is significantly cheaper than full insurance from a rental agent. At least in 50%.
Renting a car with a zero deductible
In the USA in some states (California for example), all cars, offered for rent, have full insurance, which is already included in the price. In this case, the deductible is zero, and the deposit (if it is frozen) is small, just in amount of a tank of gasoline.
Both parties benefit from a zero deductible: both the insurer and the policyholder. In any case, if you ask one and the other, then both will answer affirmatively. The benefit of the insurer lies in the very high cost of a zero-deductible insurance policy. However, the benefit of the insurant seems to be even higher. After all, a zero deductible when renting a car allows the insurant to receive insurance compensation even for the most minimal losses. Well, for example, somebody scratched the car a little in the parking lot and you can get reimbursement from the insurance company for the losses caused to you.
Since the dealers have your card details, they still has the opportunity to deduct funds from it for allegedly discovered damage. To insure yourself against such actions, keep all documents relating to the rental car. A lease agreement with a note that you have no complaints will be useful.
By the way, do not throw away receipts for paying the parking. They will come in handy if the municipality mistakenly decides to fine you for breaking the rules. We hope that our tips will help you rent a car abroad without the hassle and unnecessary expenses. Do not forget to study the traffic rules of the country where you are going, parking rules and the use of toll roads!