Cheap Rental Insurance

Many a times, we come across promotional banners promoting cheap rental insurance policies. In the work area, people who frequently need to visit locations in different cities will discuss this as they are trying to figure out the best ways and agencies to rent a car based on terms of quality of service, costs and other important factors. In order to participate in those discussions, it is important to know what exactly a rental insurance policy is. Unless this mystery is resolved, it would be impossible to rent a car in the most affordable prices in case a need arises in the future.

Rental Insurance

Rental Insurance is when an individual makes a contract with an auto insurance agency for financial assistance against any damages caused to the rented vehicle or other property along with any physical injuries sustained by him or her while driving. The agency would ask for a fixed sum of money in return for providing this cover known as a premium. The costs are directly proportional to the needs of the person buying this policy.

Coverage

If a claim is filed and all documentations are in order, the rental insurance agency is liable to pay for repair of all damages that the car has sustained; it can be repair or replacement as per the policy terms and conditions. Medical expenses for the victims are always included while those for the driver may be included by specifying explicitly. Cheap rental insurance may not cover the policy holder to the same extent as a more elaborate one. However, with increase in facilities, the cost would also increase significantly.

Misconceptions

There is a wide spread misconception that the general auto insurance bought in the state of residence would take care of an accident in a rented car. It is to be understood that there is a separate clause for this in all policies which has to be availed. While there are some policies which come with this clause included, there are others which do not. Make sure to double check your policy on whether this clause is applicable.

Precautions

While cheap rental insurance would be something that everyone would want to buy in order to keep their personal finance interests alive, it may not necessarily guarantee a complete cover. If you are a frequent traveler, then in the long run, a more elaborate policy would prove to be much more beneficial. It may be possible that you are an expert driver, but the same cannot be said for the person driving beside you and one never knows who the blame might come on. It is better to be safe than sorry.

A cheap rental insurance policy can be bought from any of the various auto insurance agencies providing this facility all across America. They all have different rates in accordance to the services offered. Read the documents carefully before signing the contract to avoid any confusion in the future which may be a cause for trouble.