Dubai
2023/06/29
Knowing more about car rental insurance packages is essential if you’ve rented a car or are about to rent one. Some insurance packages are basic requirements when renting, while others are optional. Knowing the differences between each type is essential to know which is right for you.
Car rental insurance packages differ based on the type of damage they cover. Some car rental insurance only covers any damage to the bodywork, while some cover you in case of theft. So, let’s discuss more about this to help you make an informed decision.
Marketers may try to sell you different car rental insurance packages with various perks when renting a car. Understanding the difference between each insurance package is crucial in ensuring you get the ideal one. Below we’ll explore 10 popular car rental insurance coverage types and their significance.
This insurance coverage waives the cost of repairs if there is damage to the rented vehicle. The cost of repairs is the responsibility of the rental company, and the waiver amount depends on the rental company, car category, and more. However, this package does not include liability-related expenses like damage to other vehicles, speeding tickets, and DUI tickets.
This insurance coverage combines CDW with theft protection in case the car is stolen. Also, it covers any unexpected charges like towing, impounding expenses, storage, and the like. Some rental companies may also include vandalism and a diminution of the car’s value in this insurance package.
This insurance package protects renters from financial responsibility if there is damage to the vehicle. Collision damage insurance is the optimal coverage car companies give lenders. This insurance package helps pay to replace or repair the vehicle in case of a collision with another car, a single-car accident, or a collision with an object.
The extended protection (EP) or liability protection (LP) insurance package covers third-party liabilities. This insurance package is a protection amount that equals the limit applicable to the insurance. This package covers liability to third-party like property damage and bodily injury. This insurance package covers underinsured and uninsured motorists.
This insurance package covers damages to other people’s properties up to a particular monetary value. If you are involved in an accident, this insurance package covers the cost of repair and medical bills if you injure others in an accident and are legally responsible for it.
This insurance package is a liability insurance that protects car rentals from damages caused to third parties. It covers both the third party’s property and person. This insurance package is a basic insurance most car rental companies require renters to have to some degree. So, when renting a car, you either already hold a third-party liability insurance package or buy one.
This optional insurance provides renters with additional financial protections in case of injuring a person or damaging their properties while driving a rental. This insurance package usually comes with a higher limit.
This insurance package provides coverage that protects passengers and drivers in case of an accident. All expenses involved in treating injuries or, in worst cases, death are covered by this insurance package during the rental period. Note that this insurance is only valid if the accident happens when passengers are in the vehicle.
Personal effect coverage (PEC) is an insurance package many car rental companies offer. It covers expenses related to theft or loss involving the driver’s or passenger’s belongings. Note that this package only covers these expenses provided the belonging is in the vehicle during the rental duration.
Technically, roadside assistance (RA) and roadside plus (RP) are not insurance. This insurance package provides extra help in case of damage or loss to the vehicle when on the road. It covers expenses like flat tires, going out of fuel, the car not starting, the key locked inside the vehicle, and so on.