Cars have become a necessity nowadays. From just being a form of transportation to being part of fashion, cars have definitely changed a lot in this modern time. No wonder banks have offered great promos to make cars more affordable to the masses. That is why more people are now buying their own car. Due to this, the government highly recommends, even requires, every car owner and licensed drivers to get their cars insured or at least get a car insurance policy. Getting covered helps the policy holder and the car owner get back to their old life prior any car related accident.
For people who do not own a car, when going on vacation or doing an important business, renting a car is probably one of their options. Car rental companies do not actually collaborate with car insurance companies and the car that one uses is not really covered. However, car rental companies have their own version of covering for unanticipated accidents when one of their cars is rented. They would have the borrower buy an insurance policy or sign a waiver that would broaden the car borrower’s liability insurance policy. So in case you would borrow a car, and you get into an accident, your insurance policy would cover for whatever damage you may have caused while driving a rented car.
When you are already covered and you decided to go on a trip to another state without bringing your car, naturally you would just rent a car in the state that you are visiting. The rental company would basically offer you two kinds of insurance waivers. The first one is the loss damage waiver or the LDW. The second one is the collision damage waiver or the CDW which replaces your collision and comprehensive insurance policy. With signing or purchasing these waivers, you would be relieved from paying for any damage on the car while you have it.
Other car rental companies would include the CDW under LDW and they would ask you for some amount of deductible. In renting a car, when you get into an accident due to speeding or being under the of prohibited drugs or alcohol, your insurance coverage may become void and you would have to pay for whatever damages you inflict on the car you rented.
You should also remember that when you already have an insurance policy, you do not have to buy the waiver the car rental company is offering. It would only cause you money. However, if you think that you should purchase the car rental’s type of insurance policy, their waivers typically cost about $9 to $19 per car per day.
If you think that your insurance liability coverage has a low limit, you could purchase additional supplements through Additional Liability. This will cost you $7 to $14 per car per day. The coverage of this may reach up to $1 million if ever you cause an accident leading to the damages on the car that you rented and on other people’s property and also to the injuries you might inflict to other people.