Options Bared for Rental Car Insurance


Experts agree that the large volume of cars on American roads and highways this summer can lead to more accidents and consequently, more insurance claims. Most providers have anticipated this and have implemented sweeping changes to their premiums, raising some rates considerably. To avoid the inconvenience of bringing their own cars during lengthy trips, a growing number of Americans are choosing to rent cars from rental companies.

Options Bared for Rental Car InsuranceWhile convenient, rental cars can give drivers more problems. The question of insurance often comes into mind whenever motorists rent vehicles for business or pleasure. To allay these fears, most rental companies offer customers with various forms of auto insurance. Some experts warn that these added options are nothing more than waivers that release the customer from any liability should the cars receive damage.

Recently, however, experts have expressed support for the waivers rental companies offer their customers. The most popular type, the Collision Damage Waiver (CDW), releases the driver from any financial obligation regarding damage repairs to the vehicle. To avoid paying for stolen rental cars, motorists can also pay for a loss damage waiver (LDW).

Other, newer options cover a wider range of loss or damage. The liability insurance supplement, for example, takes care of any liability claims against the customer. Drivers can even opt for personal accident insurance (PAI) for added protection in the even they suffer physical injuries or loss of income. Lastly, the personal effects coverage (PEC) will ensure that drivers get reimbursed for any personal belongings that may have been damaged or destroyed in a car crash.

Some analysts, on the other hand, say that purchasing all these extra coverage and protection can further burden motorists because of their expensive costs. To save money, expert say that motorists should first consult with their insurance providers to see if the companies offer rental car coverage. Most insurers offer coverage of one form or another for policyholders fond of renting vehicles. For some providers, extra protection can be added by clients, depending on the need and urgency of the situation.

Already, several large insurance companies are beginning to market temporary car insurance policies for clients who have the need for full auto insurance coverage for shorter periods of time. Temporary auto insurance allows policyholders to get the same level of protection as conventional insurance at shorter periods, making it one of the best alternatives to waivers.

Drivers can also ask their card companies if they offer rental car insurance. According to experts, however, card issuers are only secondary providers, meaning, primary auto insurers have to shell out money first.