It’s common knowledge that it’s better to be safe than sorry. Most people only choose to be safe after they’ve been sorry once, wondering “what’s the worst that can happen?”
We’ve decided to illustrate the significance of renting vehicle damage insurance by showing you the worst-case scenario. Continue reading to discover what will happen if you’re in an accident while driving an uninsured rental car.
In all honesty, getting into a vehicle accident isn’t as likely as you might believe. However, it’s not as unlikely as you may think either. According to specialists, the typical individual experiences an auto accident every 18 years or so of their life. As a result, it’s quite probable that you or someone you know could have an accident in a rental car.
If you’re in a rental car, it’s likely for either business or pleasure. As a result, you have more important things to do than being concerned about what will happen if you have an accident, in particular in a rental vehicle. Fortunately, we’ve taken care of the worrying for you by informing you precisely what to expect in your scenario.
Get the Details
We must first establish the proper questions in the appropriate sequence. Are you injured? Is anyone else hurt? If yes, and no one has contacted a paramedic, you should call for help. Has anyone phoned the cops? An accident report, while time-consuming to complete, can strengthen your case. Make sure you save it. This will aid in proving whether you are covered by particular parts of your insurance policy.
You must use your powers of deduction to obtain all essential information. This means taking notes on the event, gathering all relevant data, and capturing photos and videos. Of course, you should leave the experts to their tasks. But if you stay engaged in the process, you won’t get any unpleasant surprises at the end. You need to keep track of the numbers before they have a chance to catch up with you.
So, What Exactly Am I Paying For?
To analyze the cost, we’ll start by splitting it down. The fee you must pay the rental car company is determined by the kind of costs they will impose on you. Of course, these are in addition to any damages you would have to pay for the accident. Typically, when someone is in an accident, he or she is responsible for paying three kinds of fees.
- Loss-of-use occurs- when a vehicle is damaged and therefore is out of service. Every day the rental car spends being fixed or sitting in the repair shop costs the firm money. Because they aren’t able to make money by renting it out, this is because they are losing money every day it’s in the shop.
- Reduced value – like with refurbished items, cars have a decreased value. They aren’t really new, no matter how well they appear to be. Some rental car firms may charge you a fee for this. The amount, on the other hand, will be determined on an individual basis.
- Administrative costs- These are any fees associated with processing the claim. If applicable, this may also include towing expenses.
But there’s more! There is a silver lining to this cloud: if you have car insurance, credit card insurance, or state-minimum liability insurance, you may not have to pay the entire cost of repairs. Perhaps you won’t have to pay anything at all. How?
Car Rental Insurance
Car insurance is not the same for everyone. Primary or secondary rental car insurance may be available. This is rather unique to each individual. Maybe you have comprehensive coverage, maybe you only have the state minimum liability coverage. You can discover where you stand by conducting a vehicle/credit card insurance check or calling your insurers and verifying your coverage levels. The more coverage you have, the less money you will need to compensate for any losses.
The coverage limit (the maximum amount of compensation the company will cover) and the deductible (the minimum amount of money you must pay before the firm covers the rest of the cost) will have an impact on how much money you spend. Make careful to double-check this because we frequently acquire identical insurance coverage that we are unaware of.
Rental cars are generally covered by auto insurance. In that scenario, you will most likely be covered for collision and liability. If you have credit card insurance, this may also be the case. However, when renting a vehicle, you must ensure that you pay with a credit card that offers coverage in order to reap the benefits of this.
Collision Damage Waivers, which cover the whole cost of damages in a collision, are offered by the rental car company and offer the greatest protection. They can, however, be rather pricey. While it is a good idea to purchase as much coverage as possible, you should avoid accepting any additional coverage advised by the rental automobile firm. Most of them are probably unnecessary.
Be Wise, Stay Safe
Many people believe that having something is better than needing it and not having it. This is true when it comes to automobile insurance. It’s best to never take risks because the potential loss of not having any rental car insurance frequently outweighs the potential gain. Make the most of your trip by being safe and insured!