Car rental with or without drivers is no stranger to well-traveled people. Apart from booking the right vehicle, buying suitable rental car insurance also plays a crucial role in your independent trip. This post will explain the necessity of rental car insurance, the ways to add extra ones, and some notices when you rent a travel car.
The term “rental car insurance” is not yet popular to Vietnamese travelers because most of the basic ones are included in the rental cost. However, it is good for you to know about them and their benefits to make the best decision. Additionally, there are other options which are really helpful that you should consider buying for your trip.
Some common types of rental car insurance
In your independent trip, you can choose to travel by taxi, transit cars, or to pre-book car rental services for motorbikes or 4-7 seater cars in travel destinations. Each type of vehicle requires a specific type of insurance that you should get to know.
1. Basic liability insurance
This insurance is compulsory for car owners. This type of insurance does not cover vehicles but protects the driver, the vehicle, the owner, and the third party in case of unexpected events.
2. Theft protection insurance
It is also known as comprehensive coverage, used for financial protection for the legal rights and benefits of customers as well as providers against car theft. Providers generally include this insurance in the total rental cost for both parties’ interests.
3. Collision damage waiver
This is the most popular rental car insurance that travelers usually opt for. This insurance will cover the damages to the car’s bodywork. Other dent parts of the car are your responsibility to pay the repair cost or buy optional insurances for them upfront.
4. Personal accident insurance
This is another optional coverage. However, it is worth taking into account because of its coverage for medical extra costs in case of accidents.
5. Other damage protection coverage
This insurance covers the particular parts of the car (except the car’s bodywork – because this part is covered by Collision damage waiver). For instance, you can add the insurance for the wheels and window as you need.
3 options for insuring your rental car
1. Insure online when you book the rental service
Many booking apps and platforms have additional insurances attached to car rental contracts or associate with insurance companies. Those coverage packages are specially designed for customers’ needs as well as rental vehicles. It is not only about the auto bodies but also other car parts. Moreover, there is a wide variety of coverage packages for both rental vehicles and drivers, yet all related to rental car insurance. Hence, you can select an appropriate pack within a minute.
2. Sign with a third-party insurer
You can choose to buy insurance from a third-party insurance company. There are lots of options for car hire and for your trip as well, which might take much of your time to pick the right one. However, the plus here is that the price for excess coverage insurance is often lower than additional cover from booking apps/websites or rental companies.
3. Directly buy at the rental company’s counter
Car rental companies usually offer travel and rental car insurance. This coverage, available through prestigious rental companies, is pretty convenient and quickly added. All you need to do is come to rental companies for getting your rental car and consider some offers from providers for their available insurance packages. The coverage cost is included in the rental car expense if you accept the offers.
Notices for you when adding rental car insurances
Having rental car insurance helps you limit risks during the journey. Here are some notices that you should look over before choosing one.
1. Search for information
Before making a decision on the right insurance, it is worth checking the coverage on your personal car insurance policy. Because in some cases, the coverage you have on your own car extends to a rental car. It means that you can receive more protection for yourself and the car than any other coverage package insurance companies can offer. That can help you save a great deal of money for the trip or for considering other useful coverage.
2. Read the rental contract carefully
You should carefully check all terms in the contract, especially the renter’s responsibility and the coverage amount that insurance companies offer. These complementary coverages are often applied for limited terms and offer very few benefits for renters. Reading carefully and making comparisons on the terms can help you avoid taking all responsibility and pay for a huge amount of money in case of car theft or car damage.
3. Check your personal coverage
In case you have travel insurance already, you should take a look at the terms to check whether it includes rental car insurance. If not yet, you can request additional coverage for it.
Some reliable insurance companies for your reference
Here are some prestigious insurance companies providing a wide variety of insurance options for travel and vehicles for your reference:
- Pacific Cross: Pacific Cross provides a wide array of insurances, including travel insurance with detailed terms about expenses and customers’ rights. You can find information about car rental insurance in “Insurance deductible coverage for rental cars”.
- Cathay: Like Pacific Cross, non-life insurance company Cathay offers lots of options for travelers and specific buying instructions.
- Liberty: This insurance company specializes in only vehicle coverage so that the insurance products definitely focus on protection for drivers’ rights as well as the compensation for damage.
- MIC: MIC is now the partner to many well-known car rental services/platforms due to its good reputation for car rental insurances.
- Misg: You can find various suitable car rental coverage with a detailed price list.
Before the trip, you should search for rental car insurance then buy the most suitable coverage for yourself as well as your rental vehicle. That will help you feel comfortable and smooth your trip. Here are some questions for you to think about before making a decision on the right coverage:
- Is it actually regulated insurance?
- Does your travel insurance include rental car coverage?
- Does your personal coverage extend to rental cars?
- Does suggested coverage from rental companies cover your luggage and personal items?
- Does the insurance package you tend to buy cover other car parts apart from the bodywork?