How does insurance differ with rental cars?

Thinking of hiring a car in the near future? You might have a business trip booked in your diary where you’ll be needing transport to get you from place to place, or maybe, you’re looking to explore a new state behind the wheel. Whatever it is. there’s a wide variety of rental cars to choose from that will suit your trip needs.

But, did you know that many, if not all, rental car companies offer a type of car insurance? This is to help cover the cost of any damage to the car due to a collision whilst in your possession, helping you avoid a big bill at the end of your car rental agreement?

Want to know more? Read on.

What collision coverage do rental car companies offer?

Insurance for rental car hire vehicles is a lot like your own personal car insurance, where you can add different coverage packages to your policy – you can choose which coverage best suits you and your driving needs.

The collision coverage offered by car rental companies is officially known as a collision damage waiver (CDW) or a loss damage waiver (LDW). Although advertised as car insurance by rental companies, it’s actually just a type of coverage you can add to your car lease contract, rather than what we know a car insurance policy to be.

A CDW is just like the collision coverage you can add to your own personal car insurance policy, where you’re covered for any damage caused to the car if you find yourself involved in a car accident – whether it be your fault or not.

If you’re involved in an incident, this might result in some damage or in the worst case, the car ends up being written off due to unrepairable damage. With this type of waiver, you’ll be cleared for any additional costs for repairs or replacement for the rental vehicle.

How does the car rental process work?

When you know you need a car for an upcoming trip, it’s always good to explore a few different car hire websites, to see what car types they offer, the deals and price differences between companies as well as what insurance and waivers they offer – as standard and as an extra.

So, how do you book a rental car?

1.     Head to a car rental website and enter the dates you wish to hire a vehicle from. You may only need a car for the day, a week or even longer – most car rental companies let you hire a car for up to a few months.

2.     Apply all the filters that relate to what you’re looking for – is it an SUV you’ll need, a small car to get around the city in or something that will seat six or more people? All these filters will help the website find the best car available for you.

3.     Look at the deals associated with the cars shown – do any stand out to you? Do they offer better prices and deals than competitors?

4.     Once you’re happy with your choice, it’s time to check it out and reserve the keys!

It’s good to note here, that the exact car model may not be what you collect on the day – it may be a car model that’s of similar spec to the one you chose online. It simply depends on availability.