Insuring a rental car

It is possible that if a customer already has their own car insured, then a rented car may be covered by the customer’s own insurance company. This should be checked through with the insurance company before a car is rented. If a customer checks with their own insurance company first, then it will save them the hassle of paying extra for the car rental company’s insurance. Customers who have their own car insured may be able to transfer their insurance.

If a customer uses their own insurance company to cover a rental car, then any damages caused to the rental car will be covered. If the customer causes the accident, then they will be covered by their own liability insurance, which will cover the customer up to the limits of their policy.

If a customer does not have their own car, then the car rental company will offer insurance coverage. Major companies such as Enterprise, Hertz and Avis offer insurance, and this is covered by loss damage waivers (LDW) and collision damage waivers (CDW), though these types of insurance must be purchased through an insurance company.

You can also purchase liability insurance from some car rental companies, and accidental death and personal property insurance. The company Alamo, provide three types of insurance and if a customer causes more than $3000 of damage to one of the company’s cars, then the customer is held responsible. The company Enterprise offer Personal Accident Insurance (PAI). This pays out a death benefit for the driver of the vehicle whether they are in or out of the car.