You are ready for your well deserved vacation, your luggage is made and your bank is aware that you will be abroad for a while. But once on the spot, what does one do with car insurance?
Those who have a credit card covering insurance costs when renting a car should ask themselves a few questions before categorically refusing the one offered by the rental company abroad.
Credit card and insurance when renting a car
You should be aware of what your credit card insurance covers before you leave , the types of cars excluded, and the countries in which this insurance is not valid. Most of the time, it is a waiver of costs in the event of a collision, theft or damage to the vehicle rented with your credit card for a specified maximum period. This does not include damage to other people or vehicles. Some companies also offer to cover the costs for personal property in the case of theft or vandalism of the car rented for a maximum amount established.
Extended coverage with auto insurance
If you own a car, you should check with your personal insurance company to find out if you are covered for third-party liability . This takes into account accidents in which you would hurt someone else or cause damage to another vehicle than your rental car. Some insurance companies allow you to transfer this clause for cars that you do not own, such as those rented abroad, under conditions that vary from company to company.
If you rent a vehicle regularly, ask for rider 27 to be added to your auto insurance policy. Amendment 27 relates to civil liability for damage to a vehicle that does not belong to you. Rental companies offer this type of insurance when you rent a car, but it’s cheaper to add it directly to your car insurance policy.
That said, if you are doing car rental abroad only very punctually, it may be better to opt for the additional insurance offered by the car rental company on the spot. The same recommendation applies to people who do not own a car or who have a personal auto insurance policy that does not sufficiently cover civil liability.
From one country to another, the daily price of this additional insurance will vary, oscillating around fifteen dollars a day. But, it is often cheap to pay to save you a lot of trouble, especially in countries where safety and road conditions are more obsolete.
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