Rental Car Insurance

While owning a car today has become easy due to quick availability of loans, maintenance of the same can land you in huge trouble if you are not financially sound. Moreover, as the car ages, its repair and service costs increase. Therefore, rental cars would be a perfect option for you if you are someone who is worried about taking care of the costs involved in maintaining the car.

Getting a car on rent has become easy and affordable. All you need to do is spend your money on getting the fuel tank full and don’t have to worry about its maintenance. You can now rent a car for a day or even for months simply by submitting your identity, address proof and other required documents.

However, have you wondered how car insurance works for rental cars and what happens if your rented car meets with an accident? Read on to know all about rental car insurance.

Compared to comprehensive car insurance, rental car insurance works in a different way. The coverage, benefits, etc. vary depending on the geographical location and the rental company.

Protection Against Theft

In case if the car you have rented gets stolen then with this cover, you will get coverage as the theft will be covered by insurance and the coverage will be paid to the rental company. Damages caused due to theft are also covered under rental car insurance.

Collision Damage Waiver

As the name suggests, this type of insurance covers you against the damages caused to your own car. The coverage provided is limited only for bodywork damage and does not cover parts such as the windshield, battery, engine, gearbox, etc. Damages caused to the car due to reckless driving or driving under the influence of alcohol are not covered.

Third Party Liability

Under rental car insurance, if you rent a car and end up causing injury or damage to a third party person or property then coverage for the same is offered. The coverage is not applicable in case of damages caused due to unethical driving or breaking rules and regulations.

When you are driving a car hired on rent, you are responsible to provide coverage for the damages caused. At such times, buying rental car insurance helps as it helps you cover damages caused to cars as well as third parties.

• Super Collision Damage Cover

  Collision damage cover provides coverage only for the damages caused to the bodywork of the car, whereas, super collision damage covers additional parts of the vehicle. In case even if the car is damaged badly, it also gives peace of mind.

• Personal Accident Insurance

  In case if the owner driver or the occupants get injured then with this cover, the medical expenses incurred are taken care of by the insurer.

• Supplemental Liability Insurance

  With this cover, the maximum amount paid by the third party liability will increase.

• Uninsured Motorist Protection

  This cover will cover the damages or injuries in case you are involved in an accident.

• Roadside Assistance Cover

  In case if the rented car breaks down in the middle of the road then with this cover you will be provided quick assistance by the insurance company. Coverage is provided in the form of quick fuel assistance, puncture, towing, etc.

• Full Protection

  This is a combination of all the above mentioned coverage, offering you protection in case of repair costs, damage, etc.

Maximum Limit

This refers to the coverage offered based on the maximum value of the car rented and the rental company. In case if the claim exceeds the coverage amount then the additional amount has to be borne by the insurance company.

Deductible Limit

Deductible refers to cost sharing of the claim amount. Deductible is not applicable in case if the coverage offered covers complete coverage or zero deductible.

Difference Between Collision Damage and Super Collision Damage

Collision damage provides coverage only for the bodywork of the car, whereas super collision damage covers the entire car.

Roadside Assistance Cover

Few companies provide roadside assistance as a standard cover, whereas super collision damage will cover bodywork as well as other parts of the car.

Overpriced Coverage:

The collision damage cover is overpriced, at times more than the rental fare of the car.

• Contact the insurance company within 48 hours of the accident or theft
• File an FIR in case of third party damage or theft of the bike
• Submit the required documents
• The insurance company will appoint a surveyor to check on the extent of damages
• The car will be sent to the garage for repair
• Cashless service will be provided in case the car is being repaired at a network garage
• In case of theft, insured declared value will be given to the policyholder after the police shares non traceable report