Insurance offered by the car rental company

Insurance offered by the car rental company

Collision and Accident Coverage with No Collision or Down Payment: This coverage is normally referred to as Collision Damage Waiver or Loss and Damage Insurance by the Rental Company. Other costs resulting from an accident, such as administration costs and storage and locker charges, are usually covered by these warranties. If your individual insurance policy or credit card does not provide collision and accident coverage with no collision or down payment, you must obtain this disclaimer from the rental company.

Liability: In the United States, the rental agreement you sign states that if you do not purchase additional liability insurance, your individual insurance policy will be used first, while the additional insurance provided by the The rental company will not exceed the state's minimum guarantee amounts, which are as low as $ 25,000 or $ 30,000. In Louisiana, California, and Georgia, there is not even a minimum warranty amount required from rental companies. If you do not have individual insurance, purchasing insurance from the rental company is particularly important and this coverage becomes the first insurance used in all cases where the car is rented for personal use. . Regardless of the situation, it is recommended that you take out liability insurance in the amount of at least $ 1,000,000. If applicable, confirm any warranties that are available for commercial rentals.

Loss of use: The rental contracts stipulate that the renter is responsible for any “loss of use” as well as damage, that is, the loss of income resulting from the fact that the rental company cannot rent the car during the repair period. damage. These costs can be covered by a credit card, and should be covered by riders to an auto insurance policy if you have purchased them. If you purchase the Collision Damage Waiver and Loss and Damage Insurance coverage, they should cover consequential damages, otherwise the lessee who signs the contract will be personally responsible for these costs. However, a breach of the terms of the contract will void any coverage for collision damage free or loss and damage insurance. For example, driving off public roads or outside authorized territory, or towing a trailer. See the "General Conditions" section for a detailed list.

Other Considerations: Remember that the United States is a separate country from Canada and there may be times when your individual insurance is not immediately recognized in some cases. While your individual insurance or credit card may offer insurance when renting a car in the United States (if all conditions are met), it can be problematic to prove warranties immediately if they don't. were not purchased from the rental company. For example, it is standard practice in the United States to link auto insurance to a vehicle identification number (VIN). However, this is only possible if the guarantees are purchased from the rental company. In addition, it has happened in some cases that rental companies require immediate reimbursement of damage and loss of use following an accident. While it is likely that your individual insurance or credit card company will eventually pay these costs, you may be liable for the costs until your claim is processed.

One of the usual exclusions from insurance offered by rental companies is operating the vehicle on unpaved or gravel roads. If you plan to travel on unpaved roads, it would be prudent to add the appropriate endorsement to your own auto insurance policy so that coverage is extended to the rental vehicle.