Everything You Need to Know Before Buying Rental Car Insurance in India

What is Rental Car Insurance?

As the name suggests, rental car insurance is a type of motor insurance that protects your rented car against common risks. This can include damage to the rented car, theft of the car, or damage to a third party by the rented car. Getting rental insurance can help you avoid the financial burden that may arise from various risks associated with driving a rental car.

Usually, this type of motor insurance is ignored simply because the rental car period is so short. However, we have all either heard of or faced the liabilities associated with renting a car, which can make a huge dent in our pockets.

Pro Tip: Read the policy documents of your existing car insurance. Many comprehensive policies offer coverage for rental cars, as well. The coverage might be limited, but it can be cost-efficient.

Types of Rental Car Insurance

Rental car insurance policies differ slightly from your existing car insurance plan because of varying risks and liabilities. Here are some types of rental car insurance policies.

Collision Damage Waiver (CDW)

Collision damage waiver insurance is possibly the most important type of rental car insurance. This type of insurance plan covers damages in the event of an accident. Know that, in general, these policies do not offer extensive coverage for tyre, windscreen, etc. damage.

Third-Party Insurance

Third-party insurance works similarly to your regular third-party car insurance. It covers damages to a third party or to property caused by the insured vehicle.

Theft Protection

As the name suggests, this insurance plan provides coverage if the rental car is stolen. Depending on the policy type, you might also get coverage for damages incurred during an attempted theft.

Supplemental Liability Insurance

Supplemental liability insurance is worth considering if you wish to increase your liability coverage beyond the standard coverage offered by third-party insurance.

Personal Accident Insurance

Personal accident rental car insurance provides coverage for medical expenses arising out of an accident. Typically, these policies offer coverage for both the driver and the passengers.

How to Pick the Right Rental Car Insurance?

Just as you ensure that you analyse coverage, premium, risks, and other factors while purchasing car insurance, rental car insurance also requires a careful analysis. Here are some factors to consider when choosing the right plan with adequate coverage.

Understand the Rental Agreement

Read the car rental agreement carefully to understand the vehicle's liabilities. Some rental companies include third-party liability insurance in the agreement itself. Ensure that you understand the extent of coverage.

Assess the Inclusions and Exclusions

You are probably choosing rental car insurance for short-term needs, but do not ignore the policy's inclusions and exclusions. Assess these aspects to ensure you are getting adequate coverage.

Consider Opting for Deductibles

If you wish to pick deductibles under rental car insurance, be mindful of the amount. A higher deductible might come at an affordable premium, but it can also lead to higher out-of-pocket expenses. So choose smartly.

Analyse the Coverage duration.

Choose the coverage duration wisely. Rental car insurance does not work the same way as your regular car insurance. This type of policy is generally available on a daily, weekly or monthly basis. Ensure the coverage duration aligns with your plan's duration.

Understand the Claim Settlement Process

Understanding the claim settlement process is crucial when picking rental car insurance. When you are driving a rental car and face an unfortunate event, you might have time limitations to settle damages. This is where a reputable insurance company's quick claim settlement process comes into play.

Explore and Compare Policies

In today’s time, you have access to numerous digital portals from which you can purchase rental car insurance. Use technology to your advantage and ensure to explore company policies before deciding on one. This helps find affordable policies with adequate coverage.

Head to Jio Insurance Broking's car insurance page; take your time to carefully compare the policies and then make an informed decision.

Additional Considerations

In addition to the above-listed factors, there are other considerations that may be useful when purchasing rental car insurance. These include:

• Check if your credit card offers insurance for rental cars. Know that many credit cards come with this advantage.
• Ensure that the rental car insurance covers the kind of car you are renting. Usually, coverage for luxury vehicles or SUVs is more expensive.
• Look for additional coverage, such as personal belongings coverage.
• Check if your existing car insurance policy can be altered to include coverage for rental cars.

To Sum Up

Whether it is your car or a rental, ensuring safety and protection is not to be ignored. Purchasing rental car insurance makes your rental experience peaceful and worry-free. Now that you are aware of the various types of coverage and policies, ensure you protect yourself against the financial burden that may arise while driving a rented car.