How to Choose the Right Car Rental Insurance for Business Travel?
Car rental is often an integral part of planning a business trip. Before you or your employees land on a business trip, you will need to have an idea of ground transportation. There are circumstances when a rental car is better suited to your needs than a taxi or a carpool. Beyond specific requests about the car itself, the car rental process also includes finding adequate insurance, one that will not include unnecessary expenses but will also cover you in any case.
How to Choose the Right Car Rental Insurance for Business Travel
Insurance in case of accident or damage is definitely something important, and in case you don’t have it, auto dealers will not hesitate to sue you for the slightest damage to the car. This article presents important details that are worth knowing when deciding what insurance to buy for the car you have rented.
Car rental companies trust CDW insurance, which covers possible damage to the rented vehicle. In the event that the rental vehicle is damaged, you are not responsible for the full cost of repairing the damage and only have to pay a certain amount known as an “excess”. To reduce the excess to zero, car rental agencies often try to persuade customers to purchase an excess waiver. This means that, for a fixed amount per day, the car rental company waives its right to sue you in case of damage to the car. Although it is not officially insurance, it is presented as such and costs between $ 20 and $ 30 per day, a rate that is usually double the cost of the rental.
What are the benefits of excess exemption insurance?
The insurance offered by auto dealerships denies to some extent your right to sue the customer in the event of car damage, but there are some exceptions, including tire damage and negligence. In general, the terms of the CDW and the additional exemption vary from company to company, so it is important to read the entire contract carefully before signing. Assuming we do not discover serious damage, this insurance is practically the only one that allows, at the end of use, to return the keys and get going quickly, no matter how many scratches or dents the car has received.
You can also get a 3 franchise exemption insurance match insurer. In this case, you will generally have to block a certain amount on your credit card to cover the damages and then you will have to deal with the paperwork and go after insurance companies to get reimbursed. In other words, this insurance offered by car rental companies is the only one that provides flexibility, comfort, and peace of mind.
How much does it cost?
As mentioned, the cost of the excess exemption is about $ 20 to $ 30 per day, but it can go even higher. In any case, it is a price that is usually higher than the rental price itself. This is not a small profit for rental companies. Of the price they pay, they allocate about $ 3 or $ 4 a day to a common fund to cover the damages, and the rest is a profit for them. This is probably why employees are going to great lengths to persuade customers to buy insurance through them.
What are the alternatives?
A. Use your existing insurance, which may also be valid in other countries. Of course, you should check the terms of the policy in advance and see if it covers rental cars. Keep in mind that you will have to participate in your own expenses and accidents you do abroad can have an impact on your future insurance premium later on.
B. Use of insurance offered by credit card companies. Many credit cards offer accident coverage as long as you pay for your car rental with the card. However, this is usually secondary coverage, which means that the credit card company only covers the costs that the insurance company does not pay. In any case, it is advisable to pay attention to the fine print.
C. Third-party insurance. There are several sites that offer 3rd Party car rental excess exemption policies. These policies can cost $ 10 per day (or even less if you are a frequent traveler and buy an annual policy). In this case, you can simply forgo the car rental offer and save the cost of the rental car franchise exemption. If the car is damaged, the rental company will charge you the lesser of the actual repair amount and the excess that is stated in the rental agreement. You must then file a claim with your insurer, submit the relevant documents that support your claim, and once your claim is approved, the insurer will reimburse you.
In any case, if you use 3rd Party insurance keep in mind that most car rental agencies will require prepayment for damages, and then you will have to claim it from the various insurance companies.
Many travelers prefer to forgo the expensive insurance of the car rental agencies and do not encounter any problems at the end of their use. However, there are cases where the insurance company, credit card, or third-party insurance does not agree to cover an extraordinary cost charged by the rental company. If you prefer to avoid risk, it is better to buy excess exemptions and pay the highest price, but keep in mind that in most cases, other insurances will cover you as well.
Keep in mind that the “insurance” offered by car rental agencies has a significant advantage: If the rental car has a scratch, you don’t have to deal with red tape and repairs. With external insurance, you may have to pay an advance as a guarantee and deal with claims later. In any case, remember that this independence comes with a high price and an impressive profit for the company.