If you're renting a car, you may be asked if you want to buy rental car insurance. But what exactly does rental car insurance cover? Here's a quick rundown of the four main types of rental car insurance.
Basic rental car insurance
Most people are familiar with the concept of rental car insurance, but fewer know the details of what it entails. There are four main types of rental car insurance: liability, collision, comprehensive, and personal injury protection.
Liability insurance is the most basic type of rental car insurance. It covers damage to other people or property that you may cause while driving the rental car. It does not cover any damage to the rental car itself.
Collision insurance covers damage to the rental car that is caused by a collision with another vehicle or object. It does not cover any damage to other people or property.
Comprehensive insurance covers damage to the rental car that is caused by events other than a collision, such as theft, vandalism, or weather damage. It does not cover any damage to other people or property.
Personal injury protection covers medical expenses and lost wages for you and your passengers if you are involved in a car accident, regardless of who is at fault.
Most rental car companies offer some combination of these four types of insurance. You may be able to save money by buying a policy that includes all four types of coverage.
Liability insurance
Car insurance is a must whether you’re renting or leasing a car. Here’s a rundown of the four types of rental car insurance and what they cover.
Liability insurance is the most basic type of rental car insurance. It covers damage to other people or property if you cause an accident. Most states require liability insurance, and it’s included in most car rental contracts.
Collision damage waiver (CDW) or loss damage waiver (LDW) covers damage to the rental car if it’s in an accident, regardless of who’s at fault. It’s not required in every state, but it may be included in your car rental contract. Contact serenitrip.co.uk for more about CDW.
Personal accident insurance (PAI) covers medical expenses for you and your passengers if you’re in an accident. It’s not required, but it may be included in your contract.
Personal effects coverage (PEC) reimburses you for lost, stolen, or damaged personal belongings in the rental car. It’s not required, but it may be included in your contract.
Collision damage waiver
There are four types of rental car insurance: collision damage waiver (CDW), loss damage waiver (LDW), personal accident insurance (PAI), and personal effects coverage (PEC). CDW and LDW are the most important types of insurance for renters, as they cover damage to the rental car. PAI covers medical expenses for the renter and passengers in the event of an accident, while PEC covers personal belongings that are lost or damaged in the rental car.
Personal effects coverage
There are four types of rental car insurance: liability insurance, personal effects coverage, collision damage waiver, and personal accident insurance.
Liability insurance is the most basic type of rental car insurance. It covers damage to property or injuries to people that you may cause while driving the rental car.
Personal effects coverage is optional but recommended. It covers your personal belongings in the event that they are stolen from the rental car.
Collision damage waiver is optional but recommended. It covers damage to the rental car that is caused by you, up to the limits of your liability insurance.
Personal accident insurance is optional but recommended. It covers medical expenses and death benefits in the event that you are involved in a car accident.
There are four types of rental car insurance: liability, collision, loss, and personal effects.
Liability insurance covers damage to other people or property.
Collision insurance covers damage to the rental car.
Loss insurance covers the cost of the rental car if it is stolen.
Personal effects insurance covers the belongings of the renter.