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For many tourists, a trip abroad cannot be complete without renting a car. After all, this is the ideal way to “swallow” long distances and see what is not within reach of public transport. This article will try to help you to understand the importance of car rental insurance and provide useful tips to avoid the rip-off associated with purchasing the extra insurance offered by the rental company.

Each country has its own requirements for renting a car. But one thing remains the same when you rent a car abroad, and it is insurance. It is a mandatory document that is aimed to reduce your financial responsibility in the event of an accident. 

A standard car lease agreement normally comes with a policy included, but it is vital to check what risks the offered policy covers and the amount of deductible.

Best car rental insurance 

Typically, car rental companies include a basic policy by default. But the client has the right to choose on his own the option that suits him best. 

There are several common types of auto insurance, the names of which are often shortened to obscure abbreviations. Let us have a closer look at these to have a better understanding of each variant.

  • CDW (Collision Damage Waiver). This rental car policy protects against damage caused by the driver.
  • TI (Theft Insurance). This insurance type protects a rental car against theft.
  • TPL (Third Party Liability Insurance). It protects a third-party car that was damaged as a result of an accident caused by a rental car’s driver.

When purchasing an insurance policy, it is imperative to pay attention to the amount of the deductible.

There is also a full insurance option with a zero deductible. This type of insurance is called car hire excess insurance. But the price of such an insurance policy is much higher. 

Anyway, you can obtain insurance not only through the rental office but from any other insurance company like CarInsuRent.com and choose the type of cover you prefer.

Can I drive a rental without insurance?

You may not have personal car insurance and still be able to rent a car. All rental companies provide a minimum amount of liability coverage. 

It is already included in the price. But you will not be allowed to drive a rental car with zero accident protection.

How does car rental insurance with a credit card work?

Another solution for hired car insurance is a credit card. When you buy a policy from the rental car agency, they book a deposit on your bank card. 

Therefore, many credit card providers include a certain form of car protection, including rental cars. So, in some cases, you may use your credit card as financial backing for your rental.

What happens if you damage a rental car without insurance?

Such a situation is not actually possible as all rental cars automatically come with minimum liability requirements of a particular country. But let us imagine what could happen if you had rented a car abroad and got into an accident without a valid policy. 

In this case, the aftermath can be disastrous for you as all possible expenses will be out of your pocket. You will have to compensate not only for the damaged hire car but also for other damaged vehicles and injured people.

How do I claim rental car insurance?

Unfortunately, even the most attentive driver can damage a rental car, and you need to know what to do in such a case. Normally, the following actions are needed.

  • Contact the rental office. Most car rental companies ask to report an insured event within 24 hours. So you should immediately contact the company. If you are involved in an accident, do not leave the place until the event is properly recorded.  
  • Collect documents. The employee of the rental company should advise you on what documents you need to submit – make sure to collect these.
  • Contact the insurance company. If you use third-party insurance, you should contact that company to find out what documents should be submitted to receive the insurance claim.
  • Apply for an insurance claim. Then you can apply for an insurance claim directly on the company’s website. For this, prepare all scans of the necessary documents. This is the final step before being approved for the payment. The company will transfer the money within the period stated in the contract. As a rule, it may take from 1 to 30 days. If your insurance event happened abroad, make sure to check in advance what type of bank account you need to receive money without problems.

Based on the above, car hire insurance is very important and should not be neglected. Be prepared to always check what cover the rental company offers you, as seemingly similar policies can significantly differ. 

It is advisable to compare offers from several insurance companies to find the most appropriate option. Like any other service or product, we recommend that you check the car rental insurance carefully before you buy it. You should make sure that the insurance gives the widest coverage for any problem you may have. In addition, it is worth checking the terms and conditions and understanding how to inform the insurance company about the need to file a claim and how the customer service works when you are abroad.

Have a safe trip!

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