Rental car insurance is a motor insurance that covers you when you rent a car from a company. It protects you from paying for damages, theft or third-party liability in case of an accident or mishap involving the rented car. Rental car insurance differs from personal car insurance, depending on the rental company and the vehicle’s location.
Rental car insurance usually includes the following coverages: Collision Damage Waiver (CDW), Theft Protection and Third-Party Liability. CDW covers the car’s bodywork, while theft protection covers the loss of the vehicle due to theft. Third-party liability covers the damages caused to other people or property by the rented car. Rental car insurance is essential because it gives you peace of mind and saves you from paying a considerable amount of money to the rental company in case of any unforeseen event.
You can buy this category of car insurance from a rental company or an online platform.
Do you need rental car insurance?
You should opt for a rental car insurance plan when you meet any of the situations listed below.
If you do not own a car and do not have personal car insurance, opt for this type of policy. In this case, you will need at least third-party liability insurance, which is mandatory in India.
Investing in a rental motor insurance policy is wise if your personal car insurance does not cover rentals or has limited rental coverage. You should check your policy details and see if it covers collision, theft, and third-party liability for rental cars. If not, you should buy rental car insurance to fill the gaps.
If you rent cars frequently or for long periods, you should go for this type of insurance. Rental car insurance can be cheaper than paying for damages or theft out of your pocket.
Opting for this category of motor insurance will leave you worry-free about paying a high deductible or losing your no-claim bonus. Rental car insurance can have lower deductibles and will not affect your personal car insurance record.
If you are travelling for business, and your company does not cover you, choosing this type of car insurance would be prudent. You should check whether your employer provides rental car insurance for business trips. If not, you should buy it yourself to avoid any liability issues.
Disclaimer: The information provided in this blog is for educational and informational purposes only. It may contain outdated data and information regarding the relevant industry. It is advised to verify the relevance of the data and information before taking any major steps. ICICI Lombard is not liable for any inaccuracies or consequences resulting from the use of this outdated information.