Car Rental Insurance
Insurance for car rentals in Europe will generally follow the same guidelines as the United States. In the US, drivers are required to be insured against damage to persons outside of the vehicle and public property as well as damage to the rented vehicle itself. In addition to mandatory insurances, there are also optional insurances that are available when renting a car in Europe. These options are not only offered at the time of booking, but also at the rental counter.
Rental car insurance in Europe can be confusing, especially when coverage from Visa, MasterCard, and American Express credit cards are considered. As with any insurance, caveats and details can provide further complications. By asking the right questions and researching available insurance options, you can ensure that your car rental in Europe is properly covered.
Definitions Insurance can be confusing when the concept is considered in an international setting. Below are some common terms that are used when discussing insurance for a rental car in Europe.
CDW/Collision Insurance – Collision damage waiver insurance limits the amount of money due to the
rental car company in the event of damage to the rental car. This is sometimes offered by credit card companies to customers that use the credit card to pay for the car rental. CDW insurance issued by many credit cards and rental companies will not cover damage to the tires, windshield, interior, the roof, or undercarriage of the rental car. The interior stain pictured left is not covered by insurance.Theft Insurance – Theft insurance limits the amount of money due to the rental company in cases where the vehicle is stolen. It is important to mention that the vehicle must be stolen while the keys are still in the possession of the renter. Losing the keys to a rental car that is stolen is considered negligent behavior and not vehicle theft.Deductible/Excess Amount – The deductible, or excess, is the specified maximum amount of money that is due to the renter in the event of damage of theft of the rental car. This amount is often blocked on the driver’s credit card for the duration of the rental. This is done to protect the car rental company, so they are able to charge the necessary deductible in the event of an accident.Liability Insurance – Third party liability insurance will give protection to public and private property as well as persons outside of the vehicle. This insurance is mandatory and will be standard with most quoted car rental costs. Fire Insurance – Fire insurance is more commonly known as a vehicle warranty. The renter will not be liable for damage that occurs from a mechanical defect of the rental car. Fire insurance will not cover damage due to a vandalism related fire.Personal Accident Insurance – Personal accident insurance is optional coverage that is available at most rental locations. PAI gives coverage to the persons traveling inside the rental car in the event of an accident. The insurance will cover a certain amount of medical expense, as defined by the insurance terms.Personal Effects Coverage – Personal Effects Coverage is similar to PAI, but instead covers the personal items that are inside the vehicle in the event of theft. The items that are lost must be proven to be with the renter in order to file an insurance claim using PEC.Super CDW – Super CDW is an optional form of insurance for insurance. With normal CDW insurances, a deductible amount will apply. Super CDW insurance will lower the deductible amount or remove it completely. If Super CDW is purchased, no additional amount is due in an accident covered by CDW insurance.Other Insurances – As explained with CDW insurance, many items on the rental car are not covered in the event of damage. Some rental car companies will offer additional insurances to cover these items. Other plans are available to supplement included breakdown assistance, giving more coverage for running out of gas, a dead battery, or using the wrong fuel type.
Booking a Rental Car: What to Know A vast majority of countries in Europe will be uniform in accepting credit card insurance for a car rental and allow international travel with the same insurance plans that come with the rental. As with any rule, there will be a few exceptions. Insurance offered with a rental car will also have conditions that can potentially void any coverage.
Ireland Issues
In the Republic of Ireland, many insurances offered by credit cards are not accepted. It is very important to verify, in writing, that your credit card coverage will be valid for renting in Ireland. Without written proof, the rental counter will charge locally for CDW and theft insurance.
Italy Issues
In Italy, vehicle damage and vehicle theft are very common events. It is so common that many rental companies will make CDW and theft insurance compulsory for car rentals in Italy. It will always be a recommendation by the car rental supplier to purchase Super CDW insurance or to book a rate that includes no deductible.
Eastern Europe Issues
Eastern Europe travel will usually require the purchase of additional insurance. Though travel is becoming less restricted to countries in the former Eastern Bloc, there is unfortunately still a significantly higher rate of vehicle theft in these countries. If insurance is required for travel into one of these countries and the necessary insurance is not purchased, the renter will be responsible for the full value of the rental car.
Voiding Insurance
Insurance is offered as a way to offset the unforeseen costs of replacing or repairing a rental car that has been in an accident or stolen. If the driver is determined to be negligent, reckless, or if the driver willfully destroys the rental car, the insurance will be voided and the full value of the vehicle will be charged. Rental car companies will also void insurance if the vehicle is damaged while driving on unpaved roads, as the rental car is intended to be driven only on roads. Rental cars are not covered by included insurance while traveling on a ferry or boat. While the car rental company’s insurance does not cover the vehicle while on the ferry, many ferry tickets will give some sort of insurance against vehicle loss.
Not Covered
As briefly explained above, traditional CDW insurance will not cover damage that occurs to the tires, windshield, interior, roof, or undercarriage of the rental car. These items are more likely to be damaged by reckless or negligent behavior and would drastically increase the cost of insurances if covered. If the vehicle is completely destroyed in an accident, the renter will usually not be liable for items mentioned above. For example, if a rental car is destroyed, the renter should not be charged for four tires and a windshield. The photo on the left shows damage to a tire. If this damage occurs, it is the responsibility of the renter.
At the Rental Car Location: What to Expect First time renters should be aware that rental counters will always try to offer the best service to their clients by adding some of the optional insurances that are available. It is very important to carefully review the rental agreement before signing to ensure that you are not signing for coverage that is not requested. The agents at the rental counter will most often add Super CDW or insurance to cover windshield and tires in order to protect the driver. The agreement can only be modified before it is signed, so be sure to remove unwanted insurance prior to leaving the location.
Before leaving the car rental lot, it is vitally important to thoroughly inspect your rental vehicle for damage. Carefully examine the tires, windshield, and interior of the vehicle in order to ensure that your rental agreement notes all preexisting scratches, dents, and stains. If your agreement does not mention damage, you will become liable for any related cost of repair. If you note damage, return to the location immediately to have your rental agreement reflect the damages with a rental agent. In the photo example to the right, this damage should certainly be marked on the rental agreement prior to leaving the facility.
During the Rental Period If an accident occurs, you must obtain any form of documentation relating to the rental and the accident. This will include a police report, any insurance and driver information if another car is involved, an accident report or damage report from the supplier, as well as a final invoice of repairs. These documents will be important if you are charged an incorrect amount for the damage or if the third party is responsible for the accident. If the driver of the rental car is not responsible for the accident, the rental car company will still initially charge the deductible amount to the renter. The amount will not be returned until the damage charges are successfully obtained from the third party responsible.
Be Your Own Insurance Policy If you have studied the insurance that is included with your rental car, you will know exactly what to expect, not only at the counter, but when the unexpected happens. If you are looking to avoid paying for optional insurance that is not desired, be sure to review your contract and do not sign without full comprehension. By taking the time to verify coverage with credit card companies, ferryboat companies, and most importantly the rental car company, you can drive confident with the proper insurance policy.
External Links Auto Europe Car Rentals - Free, fast answers by phone or email about car rental insurance in Europe
Rental car insurance in Europe can be confusing, especially when coverage from Visa, MasterCard, and American Express credit cards are considered. As with any insurance, caveats and details can provide further complications. By asking the right questions and researching available insurance options, you can ensure that your car rental in Europe is properly covered.
Definitions Insurance can be confusing when the concept is considered in an international setting. Below are some common terms that are used when discussing insurance for a rental car in Europe.
CDW/Collision Insurance – Collision damage waiver insurance limits the amount of money due to the
rental car company in the event of damage to the rental car. This is sometimes offered by credit card companies to customers that use the credit card to pay for the car rental. CDW insurance issued by many credit cards and rental companies will not cover damage to the tires, windshield, interior, the roof, or undercarriage of the rental car. The interior stain pictured left is not covered by insurance.Theft Insurance – Theft insurance limits the amount of money due to the rental company in cases where the vehicle is stolen. It is important to mention that the vehicle must be stolen while the keys are still in the possession of the renter. Losing the keys to a rental car that is stolen is considered negligent behavior and not vehicle theft.Deductible/Excess Amount – The deductible, or excess, is the specified maximum amount of money that is due to the renter in the event of damage of theft of the rental car. This amount is often blocked on the driver’s credit card for the duration of the rental. This is done to protect the car rental company, so they are able to charge the necessary deductible in the event of an accident.Liability Insurance – Third party liability insurance will give protection to public and private property as well as persons outside of the vehicle. This insurance is mandatory and will be standard with most quoted car rental costs. Fire Insurance – Fire insurance is more commonly known as a vehicle warranty. The renter will not be liable for damage that occurs from a mechanical defect of the rental car. Fire insurance will not cover damage due to a vandalism related fire.Personal Accident Insurance – Personal accident insurance is optional coverage that is available at most rental locations. PAI gives coverage to the persons traveling inside the rental car in the event of an accident. The insurance will cover a certain amount of medical expense, as defined by the insurance terms.Personal Effects Coverage – Personal Effects Coverage is similar to PAI, but instead covers the personal items that are inside the vehicle in the event of theft. The items that are lost must be proven to be with the renter in order to file an insurance claim using PEC.Super CDW – Super CDW is an optional form of insurance for insurance. With normal CDW insurances, a deductible amount will apply. Super CDW insurance will lower the deductible amount or remove it completely. If Super CDW is purchased, no additional amount is due in an accident covered by CDW insurance.Other Insurances – As explained with CDW insurance, many items on the rental car are not covered in the event of damage. Some rental car companies will offer additional insurances to cover these items. Other plans are available to supplement included breakdown assistance, giving more coverage for running out of gas, a dead battery, or using the wrong fuel type.
Booking a Rental Car: What to Know A vast majority of countries in Europe will be uniform in accepting credit card insurance for a car rental and allow international travel with the same insurance plans that come with the rental. As with any rule, there will be a few exceptions. Insurance offered with a rental car will also have conditions that can potentially void any coverage.
Ireland Issues
In the Republic of Ireland, many insurances offered by credit cards are not accepted. It is very important to verify, in writing, that your credit card coverage will be valid for renting in Ireland. Without written proof, the rental counter will charge locally for CDW and theft insurance.
Italy Issues
In Italy, vehicle damage and vehicle theft are very common events. It is so common that many rental companies will make CDW and theft insurance compulsory for car rentals in Italy. It will always be a recommendation by the car rental supplier to purchase Super CDW insurance or to book a rate that includes no deductible.
Eastern Europe Issues
Eastern Europe travel will usually require the purchase of additional insurance. Though travel is becoming less restricted to countries in the former Eastern Bloc, there is unfortunately still a significantly higher rate of vehicle theft in these countries. If insurance is required for travel into one of these countries and the necessary insurance is not purchased, the renter will be responsible for the full value of the rental car.
Voiding Insurance
Insurance is offered as a way to offset the unforeseen costs of replacing or repairing a rental car that has been in an accident or stolen. If the driver is determined to be negligent, reckless, or if the driver willfully destroys the rental car, the insurance will be voided and the full value of the vehicle will be charged. Rental car companies will also void insurance if the vehicle is damaged while driving on unpaved roads, as the rental car is intended to be driven only on roads. Rental cars are not covered by included insurance while traveling on a ferry or boat. While the car rental company’s insurance does not cover the vehicle while on the ferry, many ferry tickets will give some sort of insurance against vehicle loss.
Not Covered
As briefly explained above, traditional CDW insurance will not cover damage that occurs to the tires, windshield, interior, roof, or undercarriage of the rental car. These items are more likely to be damaged by reckless or negligent behavior and would drastically increase the cost of insurances if covered. If the vehicle is completely destroyed in an accident, the renter will usually not be liable for items mentioned above. For example, if a rental car is destroyed, the renter should not be charged for four tires and a windshield. The photo on the left shows damage to a tire. If this damage occurs, it is the responsibility of the renter.
At the Rental Car Location: What to Expect First time renters should be aware that rental counters will always try to offer the best service to their clients by adding some of the optional insurances that are available. It is very important to carefully review the rental agreement before signing to ensure that you are not signing for coverage that is not requested. The agents at the rental counter will most often add Super CDW or insurance to cover windshield and tires in order to protect the driver. The agreement can only be modified before it is signed, so be sure to remove unwanted insurance prior to leaving the location.
Before leaving the car rental lot, it is vitally important to thoroughly inspect your rental vehicle for damage. Carefully examine the tires, windshield, and interior of the vehicle in order to ensure that your rental agreement notes all preexisting scratches, dents, and stains. If your agreement does not mention damage, you will become liable for any related cost of repair. If you note damage, return to the location immediately to have your rental agreement reflect the damages with a rental agent. In the photo example to the right, this damage should certainly be marked on the rental agreement prior to leaving the facility.
During the Rental Period If an accident occurs, you must obtain any form of documentation relating to the rental and the accident. This will include a police report, any insurance and driver information if another car is involved, an accident report or damage report from the supplier, as well as a final invoice of repairs. These documents will be important if you are charged an incorrect amount for the damage or if the third party is responsible for the accident. If the driver of the rental car is not responsible for the accident, the rental car company will still initially charge the deductible amount to the renter. The amount will not be returned until the damage charges are successfully obtained from the third party responsible.
Be Your Own Insurance Policy If you have studied the insurance that is included with your rental car, you will know exactly what to expect, not only at the counter, but when the unexpected happens. If you are looking to avoid paying for optional insurance that is not desired, be sure to review your contract and do not sign without full comprehension. By taking the time to verify coverage with credit card companies, ferryboat companies, and most importantly the rental car company, you can drive confident with the proper insurance policy.
External Links Auto Europe Car Rentals - Free, fast answers by phone or email about car rental insurance in Europe
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