Some drivers, used to the familiarity of their motor insurance package at home, find the somewhat different nature of insurance when it comes to hiring a car a little confusing at first sight.
Fortunately, however, it is possible to simply matters by breaking down the constituent parts of typical insurance for rental cars practically anywhere in the world.
Although most rental companies will offer everything that you need in the way of insurance to be able to drive away from the pick-up depot, it is important to remember that the company is interested in keeping its hire rates as competitive as possible.
This means that the typical insurance package quoted in the daily rate of hire is going to be the minimum required to give both the rental company and the customer only the basic level of cover.
For complete security and peace of mind, therefore, many customers find themselves buying "top up" elements of insurance to increase that basic cover.
Insurance for rental cars comprises three basic elements as a norm.
Probably the most familiar for any regular driver will be the need for protection against claims from third parties.
Such cover is a minimum requirement for drivers in most parts of the world and the requirement extends of course to drivers of rented vehicles too.
Nevertheless, even cover against third party claims can be limited or "capped" by the insurance provided.
Although included in the rental company's basic insurance package, therefore, it is usually worth checking on the level of cover provided and considering whether the limit needs to be raised by purchasing additional protection.
A specific insurance policy - usually referred to as Supplemental Liability Insurance (or simply SLI) - is the most common way of obtaining such protection and will typically cover third party claims of up to $1 million.
The second element of the basic package offered by most rental companies is the so-called collision damage waiver (or loss damage waiver as it is also sometimes called).
This covers accidental damage to the hired vehicle.
In the case of insurance for rental cars, however, it is important to bear in mind that this cover invariably excludes damage to such parts of the vehicle as the windows or glass, wheels or tyres, and roof and undercarriage.
Furthermore, the insurance excess attached to the collision damage waiver can also leave the customer with a potential liability for the first part of any repair bill even to areas covered by the waiver.
The typical excess will vary from country to country but is generally measured in a few hundred pounds throughout Europe (£600 is typical for the UK, for example), but rising to as much as £1,500 in Australia.
As additional protection against the liability of paying for such an excess or for damage excluded by the loss damage waiver itself, therefore, many customers choose to purchase excess insurance.
Similarly, the third core element of insurance for rental cars covers the risk of theft of the vehicle.
Whilst this gives basic protection against the risk of the vehicle being stolen - or damage caused by an attempted theft - there is again the possibility of a significant excess, for which many customers will seek the protection of additional, supplementary insurance.
Fortunately, however, it is possible to simply matters by breaking down the constituent parts of typical insurance for rental cars practically anywhere in the world.
Although most rental companies will offer everything that you need in the way of insurance to be able to drive away from the pick-up depot, it is important to remember that the company is interested in keeping its hire rates as competitive as possible.
This means that the typical insurance package quoted in the daily rate of hire is going to be the minimum required to give both the rental company and the customer only the basic level of cover.
For complete security and peace of mind, therefore, many customers find themselves buying "top up" elements of insurance to increase that basic cover.
Insurance for rental cars comprises three basic elements as a norm.
Probably the most familiar for any regular driver will be the need for protection against claims from third parties.
Such cover is a minimum requirement for drivers in most parts of the world and the requirement extends of course to drivers of rented vehicles too.
Nevertheless, even cover against third party claims can be limited or "capped" by the insurance provided.
Although included in the rental company's basic insurance package, therefore, it is usually worth checking on the level of cover provided and considering whether the limit needs to be raised by purchasing additional protection.
A specific insurance policy - usually referred to as Supplemental Liability Insurance (or simply SLI) - is the most common way of obtaining such protection and will typically cover third party claims of up to $1 million.
The second element of the basic package offered by most rental companies is the so-called collision damage waiver (or loss damage waiver as it is also sometimes called).
This covers accidental damage to the hired vehicle.
In the case of insurance for rental cars, however, it is important to bear in mind that this cover invariably excludes damage to such parts of the vehicle as the windows or glass, wheels or tyres, and roof and undercarriage.
Furthermore, the insurance excess attached to the collision damage waiver can also leave the customer with a potential liability for the first part of any repair bill even to areas covered by the waiver.
The typical excess will vary from country to country but is generally measured in a few hundred pounds throughout Europe (£600 is typical for the UK, for example), but rising to as much as £1,500 in Australia.
As additional protection against the liability of paying for such an excess or for damage excluded by the loss damage waiver itself, therefore, many customers choose to purchase excess insurance.
Similarly, the third core element of insurance for rental cars covers the risk of theft of the vehicle.
Whilst this gives basic protection against the risk of the vehicle being stolen - or damage caused by an attempted theft - there is again the possibility of a significant excess, for which many customers will seek the protection of additional, supplementary insurance.