When you hire a car, you will notice a plethora of insurance options. Some are optional, some are essential, and some are completely unnecessary for many drivers. Knowing what types of additional insurance you should pay for is not an exact science, but this guide will help you understand a bit more about the five main types of car hire insurance.
- Collision/loss damage waiver
Collision damage waiver (CDW) or loss damage waiver (LDW) means fees associated with damage to the hire car – such as an accident, fire, vandalism, theft, or the weather – are waived. As the terms CDW and LDW are interchangeable, it is important to read the details to understand what is covered. This kind of coverage is included in the charge in Europe but not in the US/Canada, where drivers must pay extra.
2. Supplemental liability protection
This type of insurance is suitable for drivers who don’t have their own liability insurance. It covers injuries to others and any damage you might cause to other vehicles or property.
3. Personal accident protection
This covers the medical costs of the driver and/or passengers in the case of an accident. Personal accident protection from your existing car insurance often extends to hire cars, so it is worth checking.
This is an optional type of insurance that covers the loss of personal belongings from your rental car by theft or damage. Those with home insurance that covers such instances do not need this cover, or those who will not be leaving expensive items in the hire car.
5. Car hire excess insurance
Drivers can take out car hire excess insurance from third-party insurers such as https://www.moneymaxim.co.uk to help cover excess costs charged by the rental company. This kind of insurance means you can avoid unnecessary insurance excess upgrades from the car hire company
It is important to understand what is included in your rental price and what coverage you really need. Finding the balance between being suitably covered and not spending a fortune is key.
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