Some people think their normal car insurance covers them for driving any car. In fact, your car insurance probably only works for your own car. Find out what you need to know to protect yourself when you rent a car.
A few years ago, cover to drive other cars was a standard feature of most comprehensive car insurance policies. If, for example, you borrowed your neighbour’s car when your vehicle was in the garage, you would more than likely be covered by your own insurance. But rising claims costs have prompted many insurers to cut back on cover, and insurance to drive other cars is now the exception rather than the rule.
What comprehensive car insurance covers
Standard motor insurance usually covers only the car listed on the policy. So, if you buy cover for your Ford Focus, don’t assume you are insured if you take your friend’s BMW for a spin.
Some policies still automatically include cover to drive other cars, but it is likely to be limited. For example, your comprehensive policy will almost certainly cover you only for third party when you are behind the wheel of another vehicle. Cover to drive other cars also rarely extends abroad and hire cars are almost always excluded, whether you’re at home or overseas.
What you’re automatically covered for when you hire a car
Hire car cover varies by country and rental company. If you’re living in Europe, most car rental agreements include cover for damage, theft and third-party liability, so you don’t necessarily have to buy extra insurance when you hire a car. But the details of any cover/insurance vary according to the make and model of the hire car and the car rental company. To protect yourself from any nasty surprises, it’s always worth reading the terms and conditions so you’re clear on what’s included – and also clear on what’s not included and how limited the cover is.
Damage cover
Damage cover is usually known as Collision Damage Waiver (CDW). It means you have to pay only the ‘excess’ if there is any damage to certain parts of the hire car. It’s not technically insurance: the car rental firm simply waives its right to ask you to pay. But the excess works in exactly the same way as an insurance excess, although it is often higher. If, for example, the excess was £800 (about €900), you would have to pay the first £800 (about €900) of any damage repair bill.
What Collision Damage Waiver doesn’t cover
It’s worth remembering that Collision Damage Waiver does not normally cover damage to all parts of the car. The windscreen, roof and undercarriage are often excluded. If the windscreen was damaged, you would therefore be responsible for the whole repair bill, not just the excess.
You would also have to stump up the full cost if you damaged the car while in breach of the rental agreement, or indeed the law. So, if you pranged the car while driving over the speed limit, you would not be covered by Collision Damage Waiver. Most rental agreements do not include any damage done to the car if you fill up with the wrong fuel, so it’s worth being 100% clear which one your rental car takes.
A few years ago, cover to drive other cars was a standard feature of most comprehensive car insurance policies. If, for example, you borrowed your neighbour’s car when your vehicle was in the garage, you would more than likely be covered by your own insurance. But rising claims costs have prompted many insurers to cut back on cover, and insurance to drive other cars is now the exception rather than the rule.
What comprehensive car insurance covers
Standard motor insurance usually covers only the car listed on the policy. So, if you buy cover for your Ford Focus, don’t assume you are insured if you take your friend’s BMW for a spin.
Some policies still automatically include cover to drive other cars, but it is likely to be limited. For example, your comprehensive policy will almost certainly cover you only for third party when you are behind the wheel of another vehicle. Cover to drive other cars also rarely extends abroad and hire cars are almost always excluded, whether you’re at home or overseas.
What you’re automatically covered for when you hire a car
Hire car cover varies by country and rental company. If you’re living in Europe, most car rental agreements include cover for damage, theft and third-party liability, so you don’t necessarily have to buy extra insurance when you hire a car. But the details of any cover/insurance vary according to the make and model of the hire car and the car rental company. To protect yourself from any nasty surprises, it’s always worth reading the terms and conditions so you’re clear on what’s included – and also clear on what’s not included and how limited the cover is.
Damage cover
Damage cover is usually known as Collision Damage Waiver (CDW). It means you have to pay only the ‘excess’ if there is any damage to certain parts of the hire car. It’s not technically insurance: the car rental firm simply waives its right to ask you to pay. But the excess works in exactly the same way as an insurance excess, although it is often higher. If, for example, the excess was £800 (about €900), you would have to pay the first £800 (about €900) of any damage repair bill.
What Collision Damage Waiver doesn’t cover
It’s worth remembering that Collision Damage Waiver does not normally cover damage to all parts of the car. The windscreen, roof and undercarriage are often excluded. If the windscreen was damaged, you would therefore be responsible for the whole repair bill, not just the excess.
You would also have to stump up the full cost if you damaged the car while in breach of the rental agreement, or indeed the law. So, if you pranged the car while driving over the speed limit, you would not be covered by Collision Damage Waiver. Most rental agreements do not include any damage done to the car if you fill up with the wrong fuel, so it’s worth being 100% clear which one your rental car takes.
Theft Security and Third Party Liability.
Burglary Protection is a basic attribute of a lot of rental contracts and also covers the driver in instance the hire automobile is stolen. Once more, an excess applies and you additionally need to follow by the law and the rental contract. The lingo can be complex-- as well as to make it a lot more complicated, some rental arrangements refer to Loss Damages Waiver, which is a mix of Collision Damages Waiver as well as Theft Security. 3rd party responsibility is a legal demand and also covers you for any kind of damage or injury to another individual or their property. It is the equal to 3rd party insurance policy in the UK and does not include death or injury to the driver of the rental vehicle. It additionally doesn't cover problems to the rental vehicle, as that's covered by the Accident Damages Waiver.Buying 'thorough' hire car cover.
You can pick to improve the degree of basic cover so it is roughly the equivalent of a comprehensive insurance plan-- for a fee. You can do this when you schedule the vehicle, prior to you take a trip, or from the rental business when you come to the rental counter to get the car. At the rental counter you may likewise be provided personal impacts insurance policy, which covers your personal possessions in the cars and truck. Personal crash insurance is an additional typical addition to standard auto rental cover. It guarantees the motorist in situation of individual injury. Before you acquire any bonus, it deserves inspecting whether your house contents or traveling insurance policy covers your personal possessions outside the home. Travel insurance coverage additionally normally include cover in case of injury while you are on holiday.Safeguarding your excess.
You might likewise be provided Super Accident Damage Waiver, or Damage Excess Waiver, which lowers the excess to absolutely no, or a really little quantity. The prices as well as terms differ, so it's worth looking into precisely what you will obtain for your loan. You can also get auto work with excess insurance policy separately, before you select up the hire automobile. It is frequently cheaper and it may also include any damage to the windscreen, tires, roofing system as well as undercarriage. Nevertheless, it deserves remembering that if you acquire a standalone plan, you will certainly need to pay the excess to the auto rental company and after that declare it back from the insurance provider.
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