At the rental counter until you are a quandary do not wait. Before planning for your next trip of business, just check if you are covered by your own policy of automobile insurance or via your company of credit card.
Rental Car Insurance
Business Use
While this expense is because of the business uses, take the
coverage offered by the rental agency for two reasons: 1) this is a deductible expense of business and so is not of your personal auto policy. 2) In case you have an accident, your insurance carriers will have no knowledge about it and hence affecting the rates of your personal auto policy.
Auto Insurance
When you are renting a car just check with your agent to find out what is covered by your policy of
auto insurance. In your rental if you are covered properly, then your current policy should involve collision coverage, comprehensive coverage and liability for rental vehicles. Collision and comprehensive coverage will cover in case you are responsible for damaging the rental car and
liability insurance covers in case there is an accident and you harm the other person.
Credit Cards
Once you know the coverage of your auto policy, look for your
credit card company. Few companies of credit card provide theft and collision insurance when their card is used for paying the rental, but this type of coverage is generally not primary to your personal auto policy. There are few restrictions applied. For instance, the card company might need that you refuse the collision damage waiver of the rental agencies- a condition for your rental agreement that will bind the liability for compensation to the car.
Keep in mind, credit cards only covers the damage to car not the claims of liability against you. This explains that you are not protected from your credit card in case you destroy property or injure others. Adding to this, this coverage does not include business use and is limited to a particular geographic area and period of time.
Rental Insurance
You should buy coverage, if you do not have a proper coverage via your policy of auto insurance or credit card. The part of
rental insurance that is not understood well is the collision damage waiver. It is not actually an insurance rather it is guarantee paid for few damages by the rental company. Each day, rental agencies provide loss damage waivers or collision damage waivers for about $14 to $20. You have to accept the responsibility for the damages, in case you refuse the collision damage waiver.
"Loss of use" is also covered by the collision damage waiver, which is the money lost by the rental agency when the car cannot be rented because of the damages.
Adding to the
collision damage waiver, the majority of the rental agencies provide:
1. Insurance of primary liability for drivers who do not use or do not have the auto insurance policies
2. Insurance of supplementary liability acting as a secondary coverage to personal policy
3. Personal insurance of accident
4. Personal effects protection insuring the belongings.