Most people would opt out of buying car insurance for their rented cars. This is because they do not see the need to fork out extra money to take out an insurance policy for something which they will only be using for a short time.

However, the length of usage does not determine whether an accident will happen. It is always better to be prepared than to be caught up in expensive medical bills, repair costs and other forms of compensation should you get into an accident while driving your rented vehicle.

Like most people, you have probably considered renting a car while on vacation for convenience in getting around. If you plan to rent a vehicle for a short duration of time, you can consider taking out a single trip policy that comes with a daily rate. If your rental period is lengthy, you can opt for an annual policy which will save you more money in the long run.

Check to see if your travel policy contains a provision for the coverage of rental car insurance excess. However, be aware that most travel policies do not cover the full excess payable. Car insurance excess refers to the amount of money that the insured will have to pay when filing a claim with the insurance company.

You should check with your rental car company on their car insurance policies to avoid any unwanted surprises as the policies differ from company to company. Some dictate a simple outstanding excess while others contain complex hidden clauses. Some may also state a single car excess, which means you will have to pay additional excess if your car crashes into and object or property and not another car.

The policies also differ according to rental locations. Remote pick-up and drop-off locations typically result in additional insurance excess to cover transport costs to the workshop. Additionally, the type of you car you rent also affects the price of the automobile insurance premium. Premium cars will of course, be more expensive.

Comments are closed.