Car Rental Insurance: What Are Your Options?

Man renting a car

Man renting a carA rental car offers one of the best transportation solutions when you want to explore a new city but give your own vehicle a break. Vehicle rental services also work perfectly for companies looking for a convenient means of transport for their clients and employees without the expense of car maintenance. Most people, however, steer clear of car rentals since they believe they are exorbitantly expensive.

The secret to an affordable car rental in Manila is knowing what services to pay for and which ones are just cosmetic. This way, you can keep your costs to a minimum. One of the essential charges other than the daily rental rates is insurance. Some crooked companies, however, take advantage of this legal requirement to sell you coverage you don’t need or already have.

The following are the essential car rental insurance categories.

Collision Damage Waiver

This is sometimes called a physical or loss damage waiver. With this coverage, your car rental company waives part or all of its expenses if the car you rent is stolen or damaged. This is only if, at the time, it was being carefully driven by an authorized driver.

Though it makes perfect sense to get CDW insurance, this might already be covered in your primary car insurance. Some premium credit cards also provide this coverage with some limitations if you use them to pay for your rental. As such, check with your credit card company and car insurer before buying it.

Supplemental Liability Protection

Woman signing a supplemental liability protectionThis is also called liability insurance supplement coverage. It’s designed as an add-on to the legally required liability insurance, which the company provides for all renters. It protects you from lawsuits in case of an accident with the car and pays the victims’ compensation.

Those with primary car insurance with above minimum coverage might already be covered. SLP coverage, however, offers higher liability protection compared to your primary insurance. It’s therefore prudent to get it even if it’s covered in your primary policy.

Personal Accident Insurance

This covers your death benefits and medical and ambulance expenses and those of your passengers in an accident. The amount you can claim in PAI differs among insurers. Most policies, however, duplicate the death, medical and ambulance coverage you have under your life, health or primary auto insurance policies. A few will give you the minimum amount required by the state.

Personal Effects Coverage

This provides compensation in case your personal effects or those of your passengers are robbed. Though it might duplicate what you might already have on a homeowner’s insurance, PEC pays you in addition to the other policy. The primary policy that covers theft of your personal effects will pay you first and then the PEC will cover whatever the other policy could not because of its coverage limit.

Like in life, there are no guarantees when driving a rental car. Though optional, the above insurance policies can ease your mind and allow you to enjoy your driving experience. Your car rental company typically sells them, so you don’t need to worry about walking around looking for an insurer.