When you rent a car, you have to sign a contract with the provider. One of the most important factors is the insurance. Read this article to find out more.
The Different Insurances Included in the Contract
Third-party Liability Insurance
Also known as LIA or Liability Insurance Automobile, liability insurance is always included in the car rental contract. It is subscribed by the renter and is mandatory to be able to drive a rented vehicle. It is used to cover damages, physical or material, that the driver has caused to third parties. However, it never covers the driver. For this, the latter has social security and mutual insurance.
Insurance for Damage and Theft of the Rental Car
Like civil liability, damage and theft insurance is always included in a contract. A deductible usually accompanies it. The latter is an amount to be paid by the client in case of damage or theft of the rented car. This amount can be significant and is fixed in the rental contract. It should be noted that it varies according to the rental company and car category. The deductible also depends on the responsibility of the renter for the damage caused:
If the renter is a victim, the responsibility is attributed to an identified third party, and therefore, the renter does not have to pay a deductible.
If the tenant is responsible, he must pay the deductible indicated in the rental contract.
The 24/7 assistance is like default insurance that every renter must include in the rental contract. However, it often only intervenes in case of an accident such as a breakdown, loss of keys, or misfuelling. It is recommended to take out an additional option or insurance that covers this type of incident.
Additional Guarantees Offered to the Driver
Also called PAI or Personal Accident Insurance, it covers bodily injury, death of the occupants of the rented car, emergency medical expenses, damage to luggage and personal effects that have been in the vehicle, loss, theft, and assistance. It can cover several drivers, including those listed on the rental contract.
Redemption of the Deductible
- The rental company offers additional insurance to cover all or part of the deductibles specified in the rental contract.
- The CDW or Collision Damage Waiver option covers the partial repurchase of the deductible in case of damage related to a collision.
- TPC or Theft Protection Coverage, also called TP or Theft Protection by insurers, covers the partial repurchase in case of theft.
- The Super Cover option can cover the total repurchase of the deductible in case of accident or theft.
- Glass breakage insurance: it is a total repurchase of the deductible for the damage caused to the car’s windows.
The Usefulness of Insurance
In Case of Theft or Accident
According to the rental contract, the client is obliged to declare the theft or attempted theft to the service provider, file a complaint with the competent authorities, provide the complaint and the original keys to the rental company within 48 hours, and to declare any traffic accident and to give a legible copy of the completed and signed accident report to the rental company within the following 5 days
In Case of Breakdown
According to the contract, the customer must inform the assistance service before any expense. If he does not respect the instructions given by the assistance service, the costs incurred could be charged to him.