Car rental companies invariably require their renters to have rental car insurance protection.  To make sure that renters have adequate coverage, most car rental companies have a rental car insurance counter from which rental car insurance may be conveniently purchased.  Various rental car insurance plans have different benefits.  The following are the usual rental car insurance options offered by car rental companies:

a. Collision Damage Waiver

The collision damage waiver is the insurance protection that absolves the renter of financial responsibility in case the rental car is damaged in collision with object or other vehicles.  However, the renter remains responsible for damages to the rental car if the collision resulted from the renter’s negligence or traffic rules violations.  Some other conditions may void protection and these should be found on the collision damage waiver policy.  This type of coverage may be acquired for varying amounts but is usually at below US$20 daily rates.

b. Loss Damage Waiver

The loss damage waiver, on the other hand, absolves the renter of financial responsibility in case the car is stolen.  Similar with the collision damage waiver, the waiver may become void if the individual’s negligence caused the loss.  These conditions should be found on the waiver itself.  The standard cost of this waiver is also below US$20 per day.

c. Liability Insurance

This type of rental car insurance benefit is generally secondary.  This means it will take into effect after the primary liability insurance protection provider has made payments for the maximum amount.  In addition, this applies if the policyholder’s financial obligations still haven’t been fully settled.  This may cost around US$9 to US$14 everyday.

d. Personal Accident Insurance

This protects the renter (the insured) and the renter’s passengers if an accident results to personal injuries.  These will pay for medical bills resulting from the rental car accident.  However, this may be redundant if the policyholder has more than adequate and comprehensive health insurance coverage.  This rental car insurance may cost below US$5 a day.

e. Personal Effects Insurance

This will provide compensation if the policyholder’s personal belongings that are kept in the car are stolen.  This costs around US$4 every day the insurance coverage is in effect.

f. Non-Owned Vehicle Liability Protection

This is the option most suitable for a frequent car renter since it will provide protection for the specified number of months or years and will be in effect whenever the policyholder drives a vehicle that he or she does not own.  This naturally includes rental cars.

The non-owned vehicle liability insurance coverage will cover the costs or liability incurred when the insured drives a vehicle other than his own and damages another vehicle, causes injury to the other vehicle’s occupants, or causes bodily harm to a bystander or a pedestrian.  This type of rental car insurance coverage, however, will not cover the policyholder for collision.