Offered and billed as a supplement, are vehicle rental insurance options essential?
Are you going to rent a car to go on vacation? Are you organizing your move by renting a utility van? Are you sure you are well covered in the event of an accident with a rented vehicle? Renters sometimes take advantage of their customers’ lack of knowledge to bill for additional insurance. While some guarantees are useful, even essential, others can significantly increase the real price of the rental.
Liability coverage: compulsory insurance
Civil liability is the basic foundation of vehicle insurance. Mandatory, this insurance is automatically included in the rental contract offered by the lessor. Its rate is already integrated into the base price and cannot be overcharged. This guarantee covers bodily injury and material damage caused to the third party vehicle and third parties, on the one hand, and damage caused to the passengers of the rented vehicle, on the other hand.
Civil liability excludes all material damage affecting the rented vehicle and bodily injury suffered by the driver thereof. In the event of a responsible accident, the repairs to be carried out on the rental vehicle must be assumed by the lessee by the terms provided in the contract. This may include a deductible, the only amount to be paid in that case, but which may range from 1,000 to 3,000 dollars and up to more than 10,000 dollars for the rental of a luxury vehicle, or not include any. In the latter case, all costs related to the car’s repair or destruction are the tenant’s responsibility.
Insurance options offered by vehicle rental companies
Priced at an additional cost, additional insurance can be taken out when hiring a vehicle. If their initial objective is to better protect the driver and the rented vehicle, it is advisable to focus specifically on the specific conditions, exclusions, and pricing. Unlike civil liability, rental companies’ insurance options are billed in addition to the initial price. As a rule, this is a daily flat rate supplement. There are four main categories of additional insurance:
- The “CDW” (or Collision Damage Waiver) allows to reduce or even eliminate the amount of the deductible applied.
- “TP” (Theft Protection): this option covers the driver in the event of attempted theft or theft of the rented car.
- “PAI” (Personal Accident Insurance): this cover protects the driver in the event of bodily injury.
- Extended breakdown assistance: this insurance guarantee allows the tenant to be repaired during certain specific events (fuel error, puncture, etc.).
At Avis, for example, the franchise buyback is billed from 13 to 25 dollars per day, depending on the category of the vehicle. Extended breakdown assistance is also available from 5 dollars per day. For its part, Calary Car Rental offers medium protection from 16.9 dollars per day, including the reduced excess, coverage against collisions, damage, theft, breakage (glass, headlights, and tires), and personal accident protection. (driver and passengers). Please note, this price is only valid for the rental of a Fiat 500 (or equivalent) for a minimum period of 15 days!
What if you were already covered?
“If the lessee pays for the rental of the vehicle with a high-end payment card, he may benefit, depending on the case, from certain guarantees, such as the insurance reduction/repurchase of the excess, the cancellation insurance of the excess, the driver’s insurance, transported goods, and personal effects insurance… Before renting a vehicle, it is therefore important to know the guarantees available and how they are implemented by paying with your payment card”, explains the Federation insurance. But if you use your bank card’s insurance, you must advance the costs after a disaster. The reimbursement is made only after the analysis of the supporting documents. And it can take several months!
Also, note that your home insurance can cover you in certain cases: “Often less attractive, it is especially useful if you rent a truck or a utility for your move. If you have an accident, it can cover all or part of the excess due to the lessor,” explains comparator AcommeAssure.
Also, consider your auto insurance. It can be extended to the rented vehicle. “For example, if your contract compensates for broken glass, fire, or natural disaster, the temporary vehicle may benefit from the same plan. Most insurers limit the length of coverage. They generally agree to cover you for 30 days,” continues AcommeAssure. So tell your insurer upstream when you rent a car. If you forget, it may not cover any damage.
An information obligation under the rental agreement
The Directorate-General for Competition, Consumption and Fraud Control reminds that all professional rental companies must provide consumers with information about the general rental conditions. In particular, insurance information must be provided:
- information specifying that civil liability insurance is included in the rental;
- an exhaustive list of the terms of the insurance included: guarantees, exclusions, and deductibles;
- insurance options offered by the lessor: guarantees, exclusions, deductibles, and prices for each.
Looking for the best rent a car in Islamabad? Carlay Car Rental is just right for you. We provide excellent car rental services with an affordable price range and provide all the necessary services to make our customers ride better.
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