Travelling to the United States for work, study or leisure is usually very pleasant. However, when it comes to organizing the trip it is necessary to take some care so that everything happens smoothly. It is worth mentioning that many people in these cases prefer to use car rental, since the cost-benefit is higher. But after all, how does the rental car insurance work in the USA?
Although the rental cars are great models and the roads are in good condition, it is important to hire insurance to avoid problems during your trip. In this post you will find information on what insurance is available in the USA and how this service works.
So read on and check it out!
What is car insurance?
It is a contract carried out between an insurance company and an individual or company in order to protect a vehicle from damages caused by collisions, accidents or theft. In this case, there is a document called policy that includes all the clauses that guide the execution of the insurance, as well as presents the coverage allowed.
Insurance companies are governed by the laws of the country where they are located, since there are optional and mandatory insurances determined by them. Therefore, it is essential to be aware of this information before hiring this type of service, whether in the USA or in any other region of the world.
What car insurance is available?
In the United States there are several types of car insurance that also cover rental cars. They protect you from damages and losses caused by accidents all over the American territory. See below the main types that exist:
- Collision Damage Waiver (CDW): this insurance protects against breakdowns and damage caused by accidents, but does not cover third parties;
- Loss Damage Waiver (LDW): besides protecting against accidents, it also protects you against theft, but the items protected depend on the insurance coverage;
- Liability Insurance (LI): this insurance protects against damages caused to third parties, including material and moral damages. It is compulsory and has a minimum coverage of U$ 1.000.000, so whenever you rent a car the rental company must include it;
- Extended Pretection (EP): this is optional and can be hired at the car rental company. It serves to increase the coverage in relation to third parties;
- Personal Accident Insurance (PAI): this protects whoever is in the rental car at the time of the accident by covering medical expenses and costs arising from the situation, as well as covering removal and death;
- Roadside Assistance (RSA): finally, this insurance covers assistance in case of emergencies, such as a flat tyre, key problems, the need for a tow truck, lack of petrol, among others.
Both CDW and LDW exempt the renter from liability in relation to damage to the car from the rental company, without it you need to bear all expenses generated as a result of problems. Usually, these insurances are already included free of charge in the car rental.
The LI, on the other hand, is mandatory by law and safeguards damages to third parties. In addition, it is essential so that you do not have to pay for the repair of the car or the medical expenses of other vehicles involved in the accident. Therefore, it must be contracted at the time of rental.
Remember that it is important to take out insurance for rented vehicles, because you will be in another country and you are not aware of all the laws in force. So, insurance is a way to safeguard your physical and financial health.
Read also: What to take in your international travel bag: a guide to travel.
How does rental car insurance work in the USA?
The insurance for cars rented in the USA can be contracted directly with the insurance company, the travel agency or the car rental company itself. It is worth noting that in the latter case the payment in most cases must be made by international credit card. Remember that IOF is charged, as well as other fees depending on the card operator.
If an accident or collision happens, or if there is mechanical failure, you can call the insurance company to advise you on how to proceed. Normally, larger insurers do not charge an excess, but smaller ones charge a minimum excess and the coverage is more limited.
You can also request an exchange of the vehicle with the car rental company, which can exchange it for another one of the same or similar category. This will depend on the size of the company, as in general bigger companies have a bigger quantity of vehicles of the same model.
In short, there are mandatory and optional ins urances that are very important to ensure the safety of both you and others involved in collisions or accidents. Therefore, knowing how rental car insurance works is essential. This way, you have all the backing to make a smooth trip around the United States.
Now that you know everything about car insurance in the USA, how about knowing how to act in case of unforeseen events during your travels? Then, read our post How not to get ripped off or scammed: Travel safety tips and learn how to protect yourself in your next adventures in North America.
See you next post!
