Reading through the T&Cs of a rental hire document can be overwhelming, especially when trying to figure out the rules of what you can and can’t do.
However, understanding the insurance coverage for your upcoming rental and whether you need to purchase additional protection will make sure you’re fully covered on the road.
Keep reading to explore the various types of insurance options available, what’s typically included, and whether your existing policy or credit card may provide coverage.
What insurance is included with a hire car?
Business Motoring Award Winners 2024
Business Motoring Award Winners 2024
Business Motoring Award Winners 2024
Business Motoring Award Winners 2024
Business Motoring Award Winners 2024
Business Motoring Award Winners 2024
Business Motoring Award Winners 2024
Business Motoring Award Winners 2024
Most car hire companies include basic insurance as part of their rental agreements, which typically covers third-party liability. This means that if you’re involved in an accident and cause damage to another vehicle or property, the insurance will cover the costs.
However, it’s essential to note that this basic coverage may not include damage to the hire car itself or cover any injuries you might sustain.
In addition to third-party liability, car rental companies often offer optional insurance upgrades for added protection. These typically include:
- Collision Damage Waiver (CDW) – A CDW reduces the amount you’d have to pay if the rental car is damaged. Without a CDW, you could be responsible for the full cost of repairs. However, even with a CDW, there’s usually an excess (the amount you’re responsible for paying) in case of damage.
- Theft Protection – This protects you from financial loss if the rental vehicle is stolen. Again, like CDW, it often comes with an excess.
- Personal Accident Insurance (PAI) – This covers medical expenses for you and your passengers if you’re injured in an accident while driving the hire car.
Are you covered by your personal car insurance?
Before renting a car, it’s worth checking whether your personal car insurance policy extends to rental vehicles.
Many comprehensive car insurance policies offer some level of coverage for rental cars, but it’s crucial to clarify with your insurance provider.
Even if your policy provides coverage, it may not include all the benefits offered by the rental company, such as a CDW or theft protection.
Does your credit card offer car hire insurance?
Some credit cards offer car hire insurance as a perk, especially premium cards. Typically, this coverage is secondary, meaning it kicks in after your personal insurance.
Credit card rental insurance often covers collision damage, but it’s important to read the fine print to understand any exclusions or limitations.
Make sure to confirm that your card provides this benefit before relying on it.
Do you need additional insurance?
If you’re unsure whether your existing insurance or credit card provides adequate coverage, it may be worth purchasing additional insurance from the rental company.
While it’s an added cost, the peace of mind knowing you’re fully covered in the event of an accident or theft is invaluable.
Ready to hire a car?
Before driving away in your car hire, make sure you have the right level of insurance coverage.
Whether you’re covered through your personal insurance, credit card, or additional protection from the rental company, understanding your policy details can save you from unexpected expenses