Accidents with a rental car are especially annoying, because often you have to pay a high deductible despite having car insurance or even comprehensive insurance. Depending on the vehicle and the provider, sums in the four-digit range can accumulate.
Even the reduction of the deductible is often associated with surcharges of up to 20 euros per day.
And here comes the rental car insurance into play. This is because it covers the additional costs of liability damage and damage to the rental car.
In the following article we tell you how you can benefit from a rental car insurance, what the most important terms around the rental car insurance mean and what else you should pay attention to when taking out a policy.
How is a rental car insured?
A rental car is initially covered by three types of insurance:
Covers, within a certain amount of coverage, personal injury and property damage caused to third parties in the event of an accident. According to the legislator, such a motor vehicle liability insurance is mandatory.
Covers damage to the rental vehicle. There are two types of comprehensive insurance: partial and fully comprehensive insurance.
Primary protects the vehicle from fire, theft or environmental damage. Secondaries from damage due to collision or vandalism. Both comprehensive insurance policies can be taken out voluntarily and are not required by law.
In addition, there is the deductible to consider. If you decide for an insurance with deductible, you have to pay a part of the damage sum yourself. With an insurance without deductible, the insurance takes over the complete amount of coverage.
How exactly the conditions for your insurance look, depends on the type, the scope, the provider and the country.
What happens in case of an accident with a rental car?
If you are involved in an accident with a rental car through no fault of your own, the car insurance will pay for the damage to the rental car. The situation is different, however, if you cause a liability damage yourself. In this case you as the renter are personally liable for the damage according to the rental contract and the law.
If you have taken out a private liability insurance for the rental car, it will cover the damage within the scope of the agreed amount of coverage. Depending on the insurance you may still have to pay a personal contribution. In any case, it is important that you report the damage to the insurer without delay.
How high are rental car costs in the case of liability damage?
How high the costs are for a liability claim with a rental car depends on how severe the damage is and how high the sum insured is.
If the damage exceeds the insured amount, you have to pay the remaining amount out of your own pocket. Possibly there is also a deductible. This is often in the four-digit range for car rentals.
Which insurance is useful for a rental car?
If the sum insured of your motor vehicle liability insurer is not sufficient to cover the damage to the rental vehicle, it is worthwhile to take out a rental car insurance policy in addition to the comprehensive insurance policies. Because this covers your own contribution in the amount of the agreed sum insured. Specifically, rental car insurance takes effect in the following cases:
- Insurance case 1 – Liability insurance for rental cars
The motor vehicle liability of the rental car insurance takes effect as soon as personal injury, property damage and financial loss are caused by the rental car and the motor vehicle liability insurance of the driver is not sufficient to pay the full amount of the claim.
- Insurance case 2 – Deductible exclusion insurance
Likewise it takes over the costs for the own contribution with damage at the rented car. This is the case in case of damage or total loss of the rental vehicle. The sum insured depends on the type of damage (e.g., the amount of the damage).B. for cars or motorcycles up to 2.500 Euro).
Is a rental car insurance necessary?
A rental car insurance is not obligatory by law. However, it is advisable to take out a rental car insurance to be prepared for all damages and accidents.
Thus, although there is the motor liability insurance and also most rental car providers have comprehensive insurance available. However, these usually contain an excess, so that you have to pay a large proportion yourself.
Is it possible to insure the rental car later??
The rental car insurance is active with the receipt of the rental car and ends at the agreed time or at the latest with the delivery of the vehicle. It cannot be taken out retrospectively.
When will compensation be paid in the event of damage?
Provided that the insurer has been informed about the reasons and the amount of the damage and all evidence of the accident has been submitted, you will receive your compensation within 2 weeks. However, there is no compensation if the claim cannot be verified.
What does not pay the rental car insurance?
- Attempts to deceive
- Intentional damage
- Occurrence of the damage before conclusion of the contract
- Interventions of high authority (z.B. War, warlike events, civil unrest, confiscation)
Obligations in case of damage
- The damage must be minimized as much as possible
- All information about the insured event must be true and complete
- You must disclose all information needed to verify the claim as well as the extent of the insurance coverage
- Claims for damages against third parties are transferred to the insurer in the amount of compensation. However, you are still obliged to cooperate in the enforcement of the claims
Rental car insurance via credit card
Some credit card providers also offer rental car insurance as a credit card service. But how extensive the insurance coverage is in the end depends on the provider and the card model. As a rule, however, not all damages are covered.
In addition, you have to pay for the rental car through the credit card for the insurance to take effect. Likewise, the maximum rental period, the maximum rental price per day and also the vehicle type is often specified by the credit card provider.
Important terms
What does fully comprehensive cover mean in rental car insurance??
A fully comprehensive rental car insurance covers all costs that arise due to a self-inflicted behavior of the driver. Damages due to gross negligence, gear damage or loss of keys are usually excluded.
What does limitation of liability mean for rental cars?
A rental car limit of liability is a maximum amount of liability for the renter agreed upon in the rental agreement or insurance policy. It can cover different types of damage such as theft, accident, damage or loss of the rental car.
However, a limitation of liability does not exempt you from all liability claims. You may have to pay a deductible or other conditions and limitations may also apply.
What is CDW for rental cars?
CDW stands for Collision Damage Waiver. This is an additional insurance that covers part of the cost of collision damage and similar damage to the vehicle when booking a rental car.
A CDW serves primarily to reduce the amount of damage that occurs in the event of an insured event. The CDW is not a fully comprehensive insurance, so it does not cover all costs. Likewise not all claims.
Rental car insurance abroad – Where are rental cars insured?
The rental car insurance for cars and motorcycles as well as the rental camper protection is valid worldwide.
Rental car insurance for the USA
The sum insured for a rental car in the USA is usually very low. Thus, usually only a basic insurance with a high deductible is offered by the car rental company. Usually, you will have to take out a number of additional insurances in order to be fully covered.
With our rental car insurance, however, you do not need to worry about additional insurance, because the U.S. is included in the scope of insurance here.
Rental car insurance, what you should pay attention to?
Are motorcycles covered by the rental car insurance policy??
Motorcycles are included in our rental car insurance for passenger cars.
Is the camper included in the rental car insurance?
For rented caravans, motorhomes or campers there is a separate insurance, the rental camper protection or camper insurance. With this you can reduce the deductible in the event of damage as far as possible (250 euros deductible).
The rental camper protection must be included with the rental of the motorhome or motorcycle. must be taken out at the latest one day after booking.
Does the rental car insurance cover theft of the rented vehicle??
Typically, theft insurance will cover the cost of a stolen rental car (but not the items inside the car or a lost car key). Often, theft insurance is only available with an excess. In our rental car insurance theft is however included with self-containment exclusion.
Does the rental car insurance cover damage to glass and tires??
Damaged glass and tires as well as roof and underbody of a rental car are usually not covered by comprehensive insurance. Instead, this task takes over the glass and tire insurance. Depending on the insurer, the roof and underbody must also be additionally insured.
Is there the rental car insurance without deductible?
The rental car insurance is available for cars as well as motorcycles without deductibles. In the event of an insurance claim, it will consequently cover all costs incurred for the repair of the rental car or even in the event of total loss.
There are no additional costs for you. With the camper resp. Motorhome you pay excluding a deductible of 250 euros.
Our rental car insurance for cars and campers
Our Highlights
- valid worldwide
- Special conditions for campers and motorhomes
- Excess exclusion
- comprehensive protection for your vehicle in case of accident and theft
from 6,90 Euro per day and car
Conclusion
Basically, personal injury and property damage caused by a rental car are covered by your motor vehicle liability insurance. The damage to the rental vehicle usually takes over a partial or comprehensive insurance.
Despite motor vehicle and fully comprehensive insurance, high costs for the deductible are still often incurred. Just these additional costs are covered by the rental car insurance.
Thus, the liability insurance for the rental car covers the expenses for personal injury, property damage and financial loss, while the deductible exclusion insurance covers the deductible for vehicle damage. The rental car insurance is valid worldwide (also in the USA).
In addition, you should pay attention to whether your insurance includes a deductible exclusion for theft, whether glass and tires are also insured and whether the insurance is valid with or without a deductible.