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Rental Car Insurance
Wednesday, 09 September 2009 21:43
Accepting comprehensive insurance cover for your rental car can double the amount you’re paying. Not taking out any car hire insurance, however, could cost you more. How much rental car insurance should you take out and from whom?

Protecting you against theft or damage of the vehicle, car rental insurance is usually worked into the rental agreement. You do however get to choose the type of cover that you need for your rented vehicle. Like everyday car insurance, rental car insurance comes in three sizes:

Comprehensive Cover
Taking out comprehensive cover on your rental vehicle is very expensive, almost doubling your rental agreement. This covers theft or hijacking, fire, third-party insurance and accidental damage. If the vehicle you’re renting out is expensive, it’s probably better to go for this type of cover, otherwise it may be better to opt for limited liability cover.

Limited Liability Cover
Similar to comprehensive, but less expensive, is limited liability. With this cover you are protected against fire, theft or hijacking and third-party, but excludes accidental damage. If you feel that your use of the vehicle may incur such damages, only comprehensive will cover it.

Essential Cover
Vehicles that cost less than R50,000 and are more than 5 years old can be taken out on essential cover. This allows you to choose a combination of covers to suit your needs. Unfortunately it’s not available for the M3 or Aston Martin.

Third-party Cover
The cheapest of covers protects you only from claims made by other people for damage to their property. The rental agency will claim the damages to their vehicle from you. Although the cheapest, it is the riskiest.

What cover you decide to cover depends largely on the rental agency and the type of car you’re renting. While some agencies do not make insurance compulsory, you should. The price is worth the risk you don’t have to take on yourself.
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