Keeping your vehicle safe and away from various perils is quite important. In many cities of the world, it is compulsory to have a car rental insurance along with your driving license to rent a car. Let´s have a close look at some important points to keep in mind about car rental insurance-

What actually is car rental insurance?

Car rental insurance is the insurance which covers all the rental cars, motor home, campervan, van and minibus. It covers almost all the damages caused to the rental vehicle due to accident, fire, theft or loss.

It also covers damages to tires, windscreen, keys, towing and other losses to hired vehicle. One can also extend the car rental insurance policy if he wants to increase some other factors to be covered in the insurance.

Which type of insurance you really need?

When it comes to safety, everyone wants to have best policies but there is no sense in paying extra charges for the coverage you already have. Following are various type of car rental insurance which would be helpful in deciding which rental insurance you actually need.

1. Collision Damage Waiver (CDW):

CDW or collision damage waiver is made available to the renters while renting a car. Your car insurance most probably include collision coverage for rental cars.

Your credit card also sometimes hold collision coverage for rental covers but it is typically secondary coverage as they will first transfer this to the auto insurance company.

The most affordable thing in this case to take collision damage waiver from the third party rental car insurance providers to avoid any inconvenience.

2. Supplemental Liability Insurance (SLI):

SLI or supplemental liability insurance covers the damage caused to other people´s property as well as the cost of medical injuries caused by you. If you have adequate liability coverage for your own vehicle than you can decline for it.

If you have adequate liability coverage it can be provided as the rental to protect you from lawsuits if you are victim of accident involving rental car.

3. Personal Accidental Insurance (PAI):

Personal accidental insurance or PAI coverage includes medical, ambulance, health or death benefits to the rental driver and the passengers in the vehicle.

If you already have health, life or car insurance then you need to take personal accidental insurance as all the above factors get covered by these insurance only.

4. Personal Effect Coverage (PEC):

Personal effect coverage or PEC covers all the theft of possessions from the rental car up to a set limit. It covers all the valuables which are being stolen from the rented vehicle during your travel or after you handed it over. This policy is also not necessary as all your valuables get covered by you homeowner or renter insurance policy if you have one.

Before you take any rental insurance, check your auto insurance policies and credit card insurance so that you can make a wise decision. It is preferable that you do a little research about the insurances before you buy one.