Renting a vehicle

Most people never think about insuring a rental vehicle. They arrive to collect the vehicle, come up to the counter and then make a series of fast decisions. Sometimes, this works out well and you have all the coverage you need at a reasonable price. But more often, you get talked into unnecessary coverage or there are dangerous gaps in the coverage. So, before you even think about making a booking, you need to do a little research to see exactly what your own vehicle's insurance covers, and what coverage is available when you use your credit card to pay for the rental.

Let's start off with your own insurance company (assuming, of course that you own a vehicle and/or are insured to drive). Under normal circumstances, you can assume the same levels of coverage and the deductible apply when you rent a substitute vehicle while your primary vehicle is off the road, or if the rental is purely for a leisure purpose, e.g. you want a more comfortable vehicle with lots of storage to take on holiday. But what's normal is not necessarily what your policy allows, so always check with the insurer before talking to the rental company. You may well find your own policy gives you perfectly adequate coverage for short-term rentals. Pausing here for a moment, to save money in these difficult times, many drivers have reduced their coverage to liability only. Many rental companies expect you to carry comprehensive and collision coverage. This may force you into buying the extra coverage. You also need to be very careful on the terms of your own policy as to whether you will be covered against towing charges should you break down. The rental company may also be able to impose administrative charges if they lose the use of the vehicle as a result of an accident.

As to the credit card company, the majority offer coverage against damage to the rented vehicle. Read the small print very carefully to see exactly what is included and what conditions you have to satisfy to be able to claim. We warn you that many credit card companies have reduced this coverage to protect their profits during the recession. One final thought is that it's exceptional to find any card up to and including platinum that offers anything more than loss or damage to the vehicle. There's not usually any cover for medical expenses should you be injured. Once you get to the counter of the rental company, you are likely to be offered Loss, Damage, Waiver. Strictly speaking, this is not an insurance cover. They simply waive some of the liability you might otherwise have as the driver of a rented vehicle. Every vehicle on the road must have the state's minimum liability cover. This can come from your own insurance. If not, you will have to buy this. Other than this, consider buying an umbrella coverage against all the unexpected but significant claims, and make sure your medical expenses are covered. So if you know you will rent a vehicle next year, get auto insurance quotes to give you good cover. Get the best valance between the insurance sold by the rental company and your own auto insurance policy.