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Rental car insurance covered by credit cards


Rental car insurance covered by credit cards

In the auto insurance sector the rental car insurance is also better known as loss damage waiver or collision insurance but it has been derided by experts in this field as the cash cow for car rental companies. Rental cars need not be insured unlike the primary vehicles. There are some auto insurance policies that can provide partial coverage to rental cars. There are a number of exclusions and the damage waivers are not entirely the comprehensive cover that one can expect as it is full of exemptions such as exclusions for property damage and higher deductibles. The credit card companies may also offer coverage at no additional cost.

The collision damage waivers are not considered as insurance in the strict sense. They are actually agreements that state that the rental company cannot levy some of the damages on the customer. It normally costs anywhere between $15 and $25 per day. But, most of the states have a minimum requirement which covers injury, death, as well as damage to property. There are three numbers that sum up the state-by-state insurance policies – the maximum coverage for each individual who is injured in the accident, the total injury coverage, as well as the coverage for damage to property, which can run up to a few thousands.

The requirement in California is 15/30/5. So, if there are 3 injured people in the accident and it causes around $10,000 in damage to property, then the car rental company would be required to pay $15,000 to the first two injured people who file where the entire $30,000 is used up as well as the first $5,000 in damage to property. The driver at fault is also liable for $15,000 in injury as well as $5,000 in damage to property. This is a baseline insurance which is provided automatically and is also included in the cost of rental.

In general, rental car insurance covers theft, accidents, as well as natural incidents like hail or falling trees. There are some insurance companies that offer different levels of coverage at different costs. Most of them do not waive off damages if anyone else other than the primary renter is driving. Tickets as well as other administrative fees will also not be covered. The driver is also not supposed to be taking unreasonable risk. Although the policies vary from one company to another, these are all factors that will not be covered. Apart from the overall limit, some of the car rental companies also include a daily limit of the coverage.

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