By: Susan Borders, Vice President, Claims
When renting a car in Europe, and other countries, it’s important to purchase car rental insurance. Automobile insurance policies purchased in the United States will only provide coverage within the U.S., Puerto Rico and Canada. It is important to be prepared for the cost of the insurance and plan ahead for what coverage will be needed. Liability coverage provided through a homeowners policy specifically excludes personal injury and property damage arising out of the use of any motorized land vehicle.
There are many types of insurance available when reserving your rental car or at the time the vehicle is picked up, including the following:
- Collision Damage Waiver – the amount the renter will be responsible for any damages to the vehicle. It is best to confirm that theft of the vehicle and other comprehensive (non-collision) losses are included. Many major credit card companies offer this insurance when the rental is paid for with their card. However, this benefit from the credit card companies is not offered when renting in certain Western European countries.
- Liability insurance covers damage or injury that occurs due to the driver’s negligence. Most car rental companies include this automatically since it is mandatory everywhere.
Both of these coverages are a must and should be thoroughly researched when scheduling a rental car, especially if the vehicle will be driven in multiple countries.
In addition to these coverages, the renter may be offered Personal Accident Insurance to cover medical bills arising out of injuries sustained in an auto accident; Personal Effects Coverage, for personal property which stolen from the rental car; and Loss of Use Coverage, for coverage when the rental car has been damaged and a replacement is needed. These are optional coverages but provide more comprehensive protection and peace of mind — a must when enjoying a vacation abroad.
Disclaimer: The above content is a general overview which is provided for discussion purposes only and is not in any way meant as providing recommendations or legal counsel. It is not intended to apply to each circumstance. Because the facts and circumstances of every matter differ and the terms, conditions, exclusions and limitations contained in insurance policies vary, you should review your policy carefully and seek any legal counsel that may be necessary or appropriate. Momentous is not responsible for any losses or damage resulting from reliance on the information contained herein.