Car rental insurance is essential when traveling; it covers you in case of accident or theft. Nevertheless, the jargon of car rental companies seems to be a little bit complicated, sometimes even obscure. We will help you decipher the different types of insurance contracts, as well as the abbreviations of use in the profession.
Car rental insurance: what for exactly?
As with your personal vehicle, car rental insurance covers you in case of an accident or damage to your vehicle. More basically, third-party insurance is included in the price of your rental car, but it obviously does not cover all damages. It will concern exclusively:
- Material damage to the third party and his vehicle
- Physical injury to the third party in the case of an accident
It is also possible to take out additional insurance when you rent your car. It usually covers the damage to your vehicle and often includes a franchise buyback option. In all cases, never forget to be very vigilant when checking the condition of the rented vehicle. Remember to report all snags and verify that everything has been noted on the rent lease.
How to choose your car rental insurance?
To drive safely with car rental insurance, you should first understand the abbreviations for rental vehicle insurance. In terms of car rental, there are two main types of insurance:
- The so-called PAI or SPAI insurance concerning the protection of people traveling in the rental car and the equipment;
- The insurance called CDW or CDW +, which concerns the partial or total surrender of the franchise and reduces the driver's liability for damage to the vehicle.
Rental vehicle insurance in case of breakdown or accident
Car rental insurance: exclusion cases
In terms of rental vehicle insurance, there are obviously many cases of exclusion of warranty. It is necessary to inform you in advance by consulting the general conditions of the insurance taken out. For further information, here are the most frequent cases of exclusion:
- Driving the vehicle by a driver not listed on the rental agreement;
- Road accident without identified third party;
- Damage caused voluntarily by the driver;
- Damage caused by improper use of the rental car;
- No cover in case of theft, if the filing of a complaint has not been made;
- In case of false declaration.
There are of course many other cases of coverage exclusion that can vary from one insurance to another or from one country to another.