Many people are concerned about insurance coverage for a rental vehicle and the amount by which such coverage could increase the daily cost of the vehicle. There are two options when trying to buy coverage for rental cars. They can make do with the policy offered by the rental company, which will usually be priced higher, but buyers who are looking for deals should check out cheap auto insurance quotes online for rentals.
Check out the Liability Limits
One of the first things to look for when researching auto rental insurance is the liability limit offered by the policy. The liability limit offered by the insurance product should ideally be higher than the requisite state limit. However, a lot of people go for minimum coverage, when it is possible to get $100,000 per person, another $100,000 for property damage and as much as $300,000 for accident and bodily injury—all at fairly competitive rates. When buying insurance for a rental, it is advisable to choose a policy with the highest limit.
Understand the Impact of Deductibles
The deductible is another important factor to consider when checking auto rental insurance. Because the comprehensive and collision deductibles can have a direct bearing on the premium of a policy, it is vital to understand that the higher the deductible, the lower the cost of the monthly coverage. Because the deductible comes out of the insured’s pockets, it can increase the amount of liability that a person has to bear. It is also crucial to ensure the policy protects the buyer incase of an accident which involves an uninsured motorist
How Much Should the Coverage Cost?
Four types of policies are available under the umbrella term auto rental insurance. The first is collision damage waiver (CDW), which is not technically an insurance policy, but a contract between the rental company and the consumer. The company promises not to hold the renter responsible for collision-related damages. The CDW costs in the range of $9 to $20 per day. Personal effects coverage and supplemental liability can cost between $2 to $9 per day, respectively. Finally, personal accident insurance will add a further $3 to $5 per day to the total cost of coverage.
Auto Insurance for Rentals with a Travel Policy
Before looking for auto rental insurance, it would be advisable to check the features of your travel policy. This particularly holds true for corporate travelers who frequently visit different states and countries on business. Simply understand what the travel coverage offers and do not buy a policy with duplicate features. When checking auto insurance quote for rentals, it is also imperative to learn if the insurance company covers vehicles rented outside the country. While some companies may offer coverage in foreign countries, the premium will be quite high.
If the rental vehicle will be used by more than one driver, it is vital to inquire if all the authorized drivers are covered by the policy. When checking auto rental insurance, many companies will charge higher premium if the vehicle will be used by more than one driver; the insurance rates will also be increased for teen car insurance.