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5 Common Car Rental Insurance Errors, and How to Avoid Them

  • 4 min read

Renting a car during a trip is one of the finest methods to see a new nation and is also an excellent option when compared to booking expensive excursions. However, if you’re not careful, renting a vehicle may end up being very costly. Here are five traps to avoid when arranging your next road journey.

1. Renting a non-insurance-friendly vehicle.

When it comes to renting a vehicle, most of us make the mistake of choosing an expensive and luxurious automobile to make our trip more special. What we don’t realize is that by doing this, we’re adding to the overall cost of our vacation in terms of insurance, car rental fees, damage recovery costs, and so on.

When renting a vehicle, make sure it is insured.

Avoid picking expensive automobiles, or sports cars, as your rental car since the cost of your collision coverage will increase if the vehicle’s value rises.

Choose a vehicle with a lot of safety features. Get information on the use of safety equipment to lower your insurance rates. A security system, front and rear airbags, and antilock brakes are just a few examples.

If you can, book the tiniest automobile that won’t make your journey unpleasant.

2. Returning and picking up the rental car at the airport.

If the pickup and drop-off area is at the airport, most rental car companies charge an additional fee on top of the base rate of the automobile. It’s commonly referred to as an “airport surcharge” or “premium location fees.” When renting from the airport, the per-day cost of rental cars is significantly greater.

If you’re travelling to a different city or country, take public transportation to one of the other branches of the rental car firm away from the airport. For example, if you want to rent a vehicle at the airport, your daily cost is $82. This fee includes an airport surcharge. On the other hand, renting a vehicle in town costs $37 on average per day.

3. Insurance was purchased at the rental desk.

Rental car insurance is one of the most confusing aspects of renting a vehicle, which is why most of us avoid exploring our alternatives and choose the insurance sold at the car rental desk.

We believe we are avoiding the agony of the insurance world, lowering our bond amount, and that we are now protected from any accident or damage that may occur on our journey. We make a mistake!

For many rental car businesses, insurance is one of the most crucial income sources. The opacity of the insurance business allows them to take advantage of it. Their insurance has a lot of exclusions and costs a lot of money, as well as includes lots of hidden expenses should you file a claim with them.

Third-party insurance is frequently less expensive, and it covers a broader range of risks than the rental desk insurance or travel insurance covered by your credit card. Starting at $7 per day, such coverage would cover most of the usual exclusions in rental desk coverage, such as windscreens, tires, car rental administration costs, and so on.

4. Purchasing more insurance than you require.

It is quite typical for you to need to purchase numerous insurance plans in order to protect yourself from a variety of risks – collision damage, roadside assistance, third-party liability, and so on.

When purchasing insurance, don’t buy coverage for water damage if you know your automobile can’t be damaged by water/floods or any other reason. Also, seek insurance companies that provide all of the features in a single package. 

5. Forgetting that you have the option to withdraw at any time.

The majority of automobile rental firms and insurance providers provide insurance in a way that binds you into staying, so they charge a cancellation penalty if you decide to cancel their coverage. When purchasing insurance from them, you’re probably not aware of this, but it’s something to be conscious of.

Find an insurance provider that doesn’t charge cancellation fees or take away any money if you decide to cancel.