What insurance do rental companies use?
Rental companies typically use a combination of insurance types to protect themselves and their customers. The primary types of insurance that rental companies use include:
1. What is Loss Damage Waiver (LDW) insurance?
Loss Damage Waiver (LDW) insurance relieves the renter of financial responsibility if the rental car is damaged or stolen.
2. What is Liability Insurance?
Liability insurance covers damages to other people’s property or injuries to others for which the renter is responsible.
3. What is Personal Accident Insurance (PAI)?
Personal Accident Insurance (PAI) provides coverage for medical expenses and accidental death benefits for the renter and passengers in the event of an accident.
4. What is Personal Effects Coverage (PEC)?
Personal Effects Coverage (PEC) protects the renter’s personal belongings that are stolen from the rental car.
5. What is Supplemental Liability Insurance (SLI)?
Supplemental Liability Insurance (SLI) provides additional liability coverage beyond the limits of the primary liability insurance.
6. What is Collision Damage Waiver (CDW) insurance?
Collision Damage Waiver (CDW) insurance covers damage to the rental car in the event of a collision.
7. What is Roadside Assistance insurance?
Roadside Assistance insurance provides services such as towing, tire changes, and lockout assistance in the event of a breakdown.
8. What is Uninsured and Underinsured Motorist Protection?
Uninsured and Underinsured Motorist Protection covers damages and injuries caused by a driver who does not have insurance or has insufficient insurance.
9. What is Comprehensive Insurance?
Comprehensive Insurance covers damages to the rental car that are not caused by a collision, such as theft, vandalism, or natural disasters.
10. What is MedPay or Medical Payments Coverage?
MedPay or Medical Payments Coverage reimburses for medical expenses resulting from an accident involving the rental car.
11. What is Loss of Use Coverage?
Loss of Use Coverage compensates the rental company for lost rental income while a damaged rental car is being repaired.
12. What is Rental Gap Insurance?
Rental Gap Insurance covers the difference between the actual cash value of the rental car and the amount owed on a lease or loan in the event of a total loss.
In conclusion, rental companies use a combination of insurance types to ensure that both the rental company and the renter are protected in various situations. It is essential for renters to understand the insurance options available to them when renting a car to make informed decisions and avoid any financial liabilities.