Renting a car? How to make sure you’re covered for the unexpected
If you’re away on holiday, renting a car is a great option to get around. It means you don’t need to rely on public transport, have a way to safely travel with kids, and can see more of your destination at your leisure.
Like having your own car, the unexpected can happen when driving a rental car which is why you need to have insurance in place. Today, we’ll be taking a closer look at what to expect with rental car insurance.
Who’s responsible for damage in a rental car?
You are. Some people assume that because it’s a rental car, the company will be responsible for any damage caused, but this simply isn’t the case. You’re 100% responsible for any damage caused to the car or damage caused to someone else’s car while the rental car is in your possession. This is why you need to have insurance in place with your rental car.
Why is this getting so expensive?
A lot of us have been in the situation where we’ve rented a car for a reasonable rate. But, when it comes to discussing insurance through the rental company we find ourselves in the situation where we either need to pay a ridiculously high excess if something goes wrong, or we pay a daily insurance rate.
It can be a difficult decision to make. Do you fork out the extra money to reduce the high excess or chance it with the risk you need to pay several thousands of dollars in excess if something happens? Either way, it can be an expensive exercise. If you do decide to reduce your excess through the rental company’s policy, make sure you read their policy in full before you sign the dotted line as many policies have a number of exclusions which can make life very difficult at claim time.
Also, remember to keep an eye on additional fees that might occur while taking out insurance such as administration fees, credit card surcharges and cancellation charges.
What are my alternatives?
When it comes to insurance for your rental car whether for domestic travel here in Australia or international travel overseas, remember that you don’t need to stick with the rental company’s policy. Although you need to have insurance in place, you can find alternative standalone policies. When you know you’ll be hiring a car, call your insurer to see what they have to offer – you will likely be pleasantly surprised at the savings when compared to what you get offered by the rental car company to insure the car.
Whether you go through a separate insurer or the rental company, there are a few things you need to consider such as the cost of the excess, any exclusions, how many drivers need to be insured and what constitutes a breach of the rental agreement. With some forward planning and knowing the right questions, you can make sure you have good cover at the best price when it comes to rental car insurance.
Learn more about Travel Insurance, or contact CGU today.