Carefully study the benefits of car rental insurance.

Enjoy insurance even if you don’t own a car.

If you are one of those people who drives a rented car and thinks that you do not need insurance. Think again. If you own a car and drive it car insurance is mandatory similarly rental car insurance is mandatory if u drive a rented car. This is especially the case in India since car insurance has been made mandatory by law irrespective of the fact whether you own it or not. Therefore, nothing more than vehicle policy is required before your vehicle hits the road

When it comes to buying insurance for a rented car people often get confused which car insurance to opt for? Before you buy rental car insurance you should be aware of the various options available to you. Whether you opt for motor insurance, health insurance, insurance travel policy or even home insurance it is very important to analyse all the options available in the market so as to take a decision only after carrying out sufficient study on policies to see what suits you best.

In case of a rented car you could enquire if you already have some provision for rental cars under your regular insurance before you purchase insurance for the rented car. If you have purchased collision insurance then you maybe covered in either case no matter what car you choose to drive. You might have to pay a deductible if required but are saved from buying a separate policy altogether. If you have a comprehensive coverage it can apply to any rental car you drive and can cover fire, theft, animal collisions and vandalism.

If an accident is caused by you when you are driving your car, then the auto insurance can take care of damages cause to other people and also the medical expenses which come up. However if you are driving a rental your personal insurance might cover you in a compressive way and rental car might not get the same coverage.

Credit card companies also can offer discounts on car rental insurance if you purchase the rental on the credit card. In this case it is recommended that you take the details in papers as every credit card company has a different policy towards rental cars. Some of them might cover damages only of your car and not the other and some may not offer personal liability coverage for physical injury or deaths. Depending on the requirements you can chose to buy rental car insurance or stick on to waivers.

The rental car companies themselves sell various insurance types and waivers. A Loss Damage Waiver and Collision Damage Waiver from a rental car company can act as a substitute to your personal insurance and can get you out if the rental car is stolen or vandalised. But these waivers are not insurances as they are not sold by any insurance company but only by the rental car company. You need to be careful and carefully chose what you require. In such cases it is best to approach a company selling auto insurance to be on the safer side.

A detailed study on what you already posses, what you need and what is available in the market will help you decide which car insurance to opt for. It is better to carry out a research before taking your final decision since one you have bought the insurance you cannot redeem it till a certain period.


Thus before you take your decision regarding which car insurance to opt for carry out a research on the various policies that insurance companies have to offer an carefully choose what is most suitable for you. Just like motor insurance health insurance insurance travel policy etc help you secure your health and your finances rented car insurance is beneficial, more than vehicle policy also since it helps you enjoy the best of both worlds i.e. saving on finances by not buying a new car in addition to all the benefits of having car insurance.