Planning to book a rental car for your next holiday but still unsure about how rental car insurance or excess cover works? Read on to find out.
Rental car insurance helps cover the cost of damage to a rental vehicle. The last thing you want to worry about while on holidays is having to pay for the cost of a dent or minor scratches left on your rental vehicle. The good thing is that there are a number of rental car insurance products that can help to reduce the cost of such damage, no matter how big or small. One such product is excess cover. Sometimes called Loss Damage Waiver (LDW) or Collision Damage Waiver (CDW), this is the amount that you agree to pay to cover the cost of damage up to an agreed amount. What the excess is and the amount it covers will depend on the company you purchase your policy from, your country of residence and destination.
You can purchase rental car insurance at the rental car company as an additional cost to your rental vehicle or purchase it as a standalone policy from RentalCover.com.
For only a few extra dollars a day you can get full coverage with RentalCover.com. When you rent a car in most countries, the default insurance you’re offered will have an extremely high excess often in the thousands. You can be are liable for this amount if any damage is done to the car (or they report that damage has been done to the car).
Some of the most popular rental car insurance companies can offer additional insurance anywhere between $19-$37 per day. Depending on the company, the coverage can vary wildly often excluding those important things like keys, windscreens, tires and underbody damage
On the other hand, RentalCover.com offers insurance which gives you much greater coverage for around $7-16 and has no excess depending on the country you are in.
Purchasing rental car insurance is optional, however in the event of something going wrong, the cost of repairs might leave you out of pocket -- if you avoid any insurance you can be deep, deep out of pocket in the thousands! In such cases, it pays to spend money upfront on excess coverage, LDW or CDW. These products effectively keep the cost of damage to a manageable amount.
Things to watch out for is any exclusions that the rental desk often has (RentalCover has no exclusions!) these can include tyres, keys, windscreen, underbody. You also want to check what your excess, liability or deductable might be even with the insurance and if there are any other fees if you do damage the car. Such fees can include admin fees to process the repair and demuring fees (the daily rate of the car while its off the road).
RentalCover.com covers this excess along with any administration fees or other fees that rental companies may charge including:
Excess Cover or Excess Reduction Insurance is designed to protect you against any excess that you might have on your rental car. Excess is the amount that you are liable to pay should you be in an accident of if your rental car is damaged. Excess is sometimes also referred to as a deductible.
Usually, when you rent a car Excess Cover Insurance usually brings your excess down to zero, which means you won’t have to pay anything in case of an accident or damage.
CDW is an optional service sold by car rental companies that protects you in case you’re in an accident or any event that causes damage to your car rental. CDW may or may not include a deductible or an excess. Typically, if you rent a car in the United States, your CDW covers you for all the costs related to damages to your car rental whereas if you’re traveling elsewhere, chances are that your CDW has an excess, which may be up to a few thousand dollars.
LDW on the other hand, is a combination of CDW and Theft Protection, which means that you will be covered for car replacement if your rental car is stolen during the period of your rental.
Please keep in mind that CDW or LDW only covers car rental damage or theft, in the case of LDW. It does not cover you you for damage to another vehicle or if the accident results in injuries.
Think of SCDW as a premium version of CDW. It covers you for most of the exclusions present in the CDW option offered by the car rental company. It also reduces your excess down, in most cases, down to zero. Please keep in mind that SCDW, or CDW and LDW for that matter, are all optional protection services and it is not mandatory for you to purchase them.
Supplementary liability insurance (SLI) is an insurance option that covers you for third party liability. This means that if you happen to be in an accident and cause damage to another vehicle, you will be covered for damages to the third party’s vehicle up to a certain amount.
Commonly referred to as Personal Accident Insurance (PAI), this type of insurance has multiple names: Personal Accident and Effects (PAE) Personal Accident Insurance (PAI) or Personal Effects Coverage (PEC) Personal Protection Package (PPP).
PAI protects you against costs related to injuries caused to the driver or the passengers of the rental car in the event of an accident. This can include costs like medical costs, emergency ambulance costs, accidental death cover etc.
With a RentalCover.com insurance policy, not only will you be fully covered by an underwritten insurance policy, you will also save money. Read more about how RentalCover.com works.