Whenever you sign a rental car agreement, it is important to understand the specifics of insurance requirements. While all rental companies have different policies, there are some commonalities between all rental agreements. A lot of individuals state that it is a waste of money to buy insurance from the rental company. However, this guide highlights the importance of rental insurance, the features of this insurance and other information you must know before renting a car.
1. Types of Rental Car Insurance Coverage
There are four main types of car insurance offered by rental companies. These include collision damage waiver, liability insurance, personal accident insurance and personal effects coverage. A collision damage waiver covers costs associated with damage to a car or the loss of a vehicle. This often has the highest daily price. Liability insurance is coverage for the costs associated with damage to others that is your fault. Personal accident insurance covers medical bills or emergency medical expenses. Personal effects insurance protects your belongings inside the car and is useful if you are carrying any valuables.