What are the essential insurances when renting a car?

For those who wish to go on holiday or those who want to rent a car for their move, there are many insurances to take out. Some are essential in case of an accident while renting a car and others are optional. Some rental companies take advantage of their customers’ lack of knowledge about the various insurances and offer exorbitant prices for the rental. To avoid this, it is necessary to know the different insurance models available before signing the car rental contract.

Compulsory third-party liability insurance

For all people who drive a car, whether the owner of the vehicle or a rental car, the subscription to the civil liability cover remains compulsory. For car rental, it is an insurance already included in any rental contract. It covers damage to other cars or third parties. It also covers the passengers of the vehicles in the event of an accident. On the other hand, it does not cover the driver or damage to the vehicle in question. In case of an accident, the damage caused to the car must follow the terms of the contract, but in principle, it is always the renter who must pay for it.

Other options available when renting a car

There are also other insurance options available for car rental. These are designed to protect the rented car and its driver. These options are priced extra apart from the price of the car rental. In general, there are four types of insurance available. The first, also called CDW (short for collision damage waiver), gives you the opportunity to reduce or waive the deductible. The second option allows the renter to be covered in case of theft of the vehicle. The PAI (also called personal accident insurance) insures the driver of the vehicle in the event of an accident. And as a last option is the extended breakdown assistance. This option allows the renter to insure the car in case of a breakdown.

For those who already have coverage

If the tenant pays for the car rental using a high-end credit card, the latter sometimes offers guarantees for the owner. This can be a reduction insurance or even a repurchase of the excess. Some cards even allow you to obtain driver’s insurance. Before signing a vehicle rental contract, it is therefore important to check the guarantees offered by the payment card.

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