Insurance for rental cars

Renting a car has never been easier. Most of the major car rental companies and many of the smaller ones have their own Internet sites and a reservation can be made with a few simple clicks. Many offer what seem to be very competitive prices if you take out an all-inclusive rental and insurance deal and pay online. It is worth remembering though that insurance for rental cars does not have to be bought from the car hire company, convenient though that may be.

There are many independent insurance companies in the high street and on the Internet who may offer a better deal on insurance for rental cars. Many will be able to offer advice and guidance on what is the best deal for an individual's particular circumstances.

When most people think of insurance for rental cars they usually think of a policy that is based on the car rental agreement itself, valid only for the duration of that rental. For some a rental based insurance policy may indeed be a solution worth considering but there are other types of policy that may warrant consideration particularly if a rental car is needed for longer periods or one is going to be hired on a number of occasions.

A policy which is valid for the duration of the rental, even if it is part of an all-inclusive deal will normally have been calculated as a fixed amount per day multiplied by the number of days the car is to be rented for. The insurance policy taken out in this case covers the rental agreement. However some independent insurance companies can offer policies with durations of longer periods. With this type of policy the policyholder can rent a car as many times as they want within the duration of the policy. It is the policyholder who is covered. This type of policy can also have a number of other named drivers. This can often be more cost effective than taking out individual policies that cover a specific rental.

Insurance for rental cars normally provides cover for damage to the vehicle (Collision Damage Waiver) theft of the vehicle and third party cover. It is no different from any other type of insurance in that it normally carries excess. The excess is the amount of any claim that must be paid by the renter of the car before the car rental company’s insurers will pay out. Excess amounts vary but they are normally between 500-1500 pounds. An excess waiver policy bought either as part of the rental or from an independent company, provides cover that will pay the excess in the event of a claim.

Like most policies, insurance for rental cars may come with a number of exclusions. These exclusions typically relate to damage to the windscreen, roof, tyres or undercarriage and what this means is that it is the hirer of the vehicle and not the insurance company who must pay out if these are damaged. These exclusions may also apply to any excess waiver policy taken out taken out through the car rental company, but typically insurance for rental car policies taken out through insurance companies directly may have better terms of cover in these areas.