Insurance for Rental Cars

Is Insurance Included with Rental Cars?

When renting a car, it is important to know what you are covered for when it comes to insurance. Many people don’t know exactly what they can claim or can’t claim in the case of an accident. Luckily, most car rental companies do include insurance cover within the quoted price. But what many don’t know is that the excess amount is usually higher than what you are expecting it to be. We asked a Perth car hire company about what is included when customers like you and me, rent a car from them. The answer in short was it depends the the type of cover you are after. So what they are saying is that you can have different levels of insurance protection. The higher the level of protection you are seeking, the higher the price that you usually have to pay.

Insurance Excess

When it comes to car insurance, one of the most important factor is the amount of excess that is payable when you make a claim after an accident. For example, with a $500 excess – if you had an accident and the quoted price to fix the damage is $2500; you are simply out of pocket by $500. The rest would be payed for by the insurance company, which is usually dealt with by the car rental firm. What you should be trying to avoid is the ridiculous amount that some companies charge for excess, for example we know of a company who would charge $2000 for excess. You heard right! It means if you are involved in an accident, be prepared to fork out $2000 to get it fixed.

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Additional Premium for Hire Vehicles

Does the high price that you sometime see for insurance actually justified? In short, most yes. For example, you may be charged an additional fee for being a young driver. But if you think about it, it is sort of fair – since you are at higher risk (owing to being an inexperienced driver) of being involved in an accident. At the end of the day, vehicle hire company need to cover the cost of lending you the car. Otherwise there is no point of running a business, right! But at the same time, the government need to regulate what charges are considered fair – since car rentals are considered a necessity especially for tourists during a holiday trip. An old saying goes something like this: only pay for extras that you think will save you the headache after an accident. In general, the chances of being involved in accident is relative minor. For example, when was the last time you were involved in a car accident whilst using a rental car? Once or none right? That is why, many will never consider paying for additional protection or reduced excess premium.

Ultimately, the choice is yours. Consider the risks and of course your budget. So what do you think about this topic? Have you ever been involved in an accident in a hire car or have you ever been in a situation where you think that you have been unfairly charged? Let us know by commenting on this page. We will try our very best to reply as soon as possible.

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