In the past, you simply selected a vehicle from one of the many brick-and-mortar car rental companies found at train stations or airports. But now there are more options than before. Technology has made possible other alternatives like peer-to-peer services-where personally owned cars can be lend, and car sharing options where customers can rent cars on a monthly basis from a wide range of locations.
The auto insurance coverage offered by traditional car rental companies is fairly standardized. However, coverage varies widely among other types of car sharing programs. The most important step is to read the car rental/sharing agreement—most companies clearly state what is covered as well as the supplemental coverage that can be purchased. This means more options to customers, but increased questions about insurance. Thankfully, there are possibilities to get duplicate insurance for rented cars without wasting money.
Regardless of the rental car option, we suggest making two phone calls:
• First, to your insurance company to find out the current status of your car insurance. In most cases, the coverage and deductible on your car will apply when you rent a car, only if and when the rental car is used for non-business purposes.
If you have dropped collision or comprehensive, then the damage of your rental may be covered. However, as the policy coverage differs from country to country, consultation with your insurance company would be apt for the same.
Ensure whether your insurance company pays for—or provides a rider for—administrative fees, loss of use etc.
• The second call would be to your credit card company. Insurance benefits provided would depend on the credit card provider. The coverage with types of issues can claims may also vary. However, most credit cards provide only limited coverage, such as covering the deductible.
To know exactly the kind and amount of insurance included, the toll free number behind the credit card used for the purchase may be used. If you are completely depending on credit card insurance claims, make sure you ask your credit card provider for more information.
Credit card benefits are mostly secondary, to the personal insurance policy or the insurance coverage offered by the rental car company.