Making sure you're covered before you arrive in paradise
Jun 17, 2014
You have just landed in your favorite vacation spot and you have everything you need for a wonderful time - sun block, golf clubs, snorkel gear etc. but do you really have everything? Make sure your holiday memories remain wonderful by ensuring you ask questions to ensure you have the right coverage for your rental car before you arrive in paradise!
Renting a car can get a person from Point A to Point B, but it can be confusing as to what type of insurance is needed to protect the driver in the case of an accident along the way. There are a variety of options for insurance to protect the renter whatever his situation in case there is damage or theft incurred during the rental period. And those options can provide varying levels of coverage -- from basic liability insurance covering potential injuries and collision insurance covering damage to the car during an accident, all the way up to insurance that covers any potential medical injuries or other types of damage to, or by, the car. Some insurance is required on the car during the rental period, but where and how the renter pays for it can vary.
In some cases, a driver's existing car insurance policy on his own car may offer sufficient coverage for a rental. It depends on the specifics of the policy and the insurance company offering it, so a driver should check with his company to see if the policy also would cover any repairs or damage incurred while driving a rental car, or if items stolen from the car while it is rented would be covered. The policy owned by the renter should include basic liability and collision coverage, but may also include comprehensive insurance that covers additional damage to the car, or policies that cover medical costs tied to an accident. Make sure to confirm the jurisdictions the coverage extends to as most Alberta policies extend to Canada and the United States only – you may not have coverage if renting in Mexico for example.
If an existing insurance policy does not cover rentals, a driver should also check with their credit card company, since some cards also offer insurance coverage on rentals charged to the card. Many cards offer some collision and theft protection on rental cars, but an individual seeking a rental should check first to see if it would be sufficient to cover any potential costs. Credit cards are often relied on as secondary insurance when renting a car, but may not pay out enough to cover costs where major damage or theft occurs. They generally cover only basic collision damage, and do not cover liability of the driver, passenger or bystanders.
The vast majority of car rental companies also offer renter's insurance to drivers that rent cars from them. Companies can offer varying levels of coverage for varying prices, and the specifics depend on the exact policies. Keep in mind that rental companies see insurance coverage they sell with a rental as a money-maker for them, so consider that although their policy bought with the rental may provide appropriate coverage, it's not likely to be at a reasonable rate. Car rental companies offer a variety of coverages, ranging from basic liability and collision insurance all the way up to comprehensive, but costly, packages.
So go ahead, head out to your favorite vacation spot – but make sure you are informed and more importantly covered.
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