The ban on travel is being lifted as the world is slowly limping back to normal, but several restrictions still remain, especially in public transportation. So, post pandemic, hiring a car for your next holiday seems the most logical way to travel. Public transportation also poses a health hazard as you will be in the company of strangers who might be carrying the virus. When you hire a car for your family you are travelling in the safety of a personal space where you can adhere to all safety and hygiene protocols.
Is Insurance of the Hired Vehicle Important?
Post pandemic, insurance is going to be very important for both you and the equipment you use. Car rental insurance has become more important than ever as the right insurance it can help you in case of any eventuality or provide peace of mind.
Car Hire Insurance Explained
- CDW and LDW
CDW (Collision Damage Waiver) is the most common insurance you can get. In CDW the rental agency waives or relinquishes its right to collect a high amount from you if the vehicle is damaged. You would have to pay a reduced amount though. If you find CDW very basic, then you can opt for LDW (Loss Damage Waiver) which is CDW with TP (Theft Protection). LDW covers if your rented car is stolen during the rental period.
- Super Collision Damage Waiver (SCDW)
This is also known as scdw insurance and is an upgrade on standard CDW. You can opt for it if you are unsatisfied o how much the standard CDW or LDW covers. For an extra fee SCDW covers a lot more damage than standard CDW (CDW covers only the body work of the car). Another advantage of SCDW is that it lessens the risk of self-inflicted damages (damage to the car while you are driving). Often the SCDW will cover cost of services like car replacement and repairs in emergencies. You need to check the policy papers in detail as SCDW varies from country to country and even company to company.
- Car Rental Excess Protection Insurance
Often this is considered as another name for SCDW and is mainly offered in Europe and some other regions. Excess protection Insurance actually means that for a fee the rental agency is waiving the excess amount they will charge for damage in a car with normal CDW.
CDW and SCDW are usually provided by the car rental company and are often exorbitantly charged. The damage charges are also often massive. An excess protection Insurance from a third-party insurance provider can be beneficial in lowering your pay out considerably. This is normally cheaper, and also covers more of the car in case of a damage. Typically, a car excess insurance covers wheel, tyres, undercarriage, roof and windscreen. Often this also covers theft or damage of the car by vandalism and this feature is extremely beneficial in alien cities.
Another advantage of an excess protection Insurance is that you can buy a daily or an annual policy. An annual policy will be far cheaper and convenient for the frequent traveler.
What is Covered by a Car Excess Protection Insurance?
Apart from the excess amount on damage/theft charged by the rental over the normal CDW ceiling, a typical car excess protection insurance also can cover:
- Inclusion of multiple drivers
- A longer rental period (usually 60 days)
- Loss of car keys, flat battery and misfuelling
- Late pick up charges for delay in flights
- Replacement car
Car hire excess insurancenormally does not cover:
- Any rental where the policyholder is not the main driver
- Any policy purchased after the car is rented
- Any vehicle which is over 10 years old
- Any vehicle which is exorbitantly costly
- Off-road driving
- Commercial vehicles
- Charges to be paid by the rental company, such as towing costs or a mechanical breakdown
Select the right insurance for you and your family. When you are travelling for leisure, ensure the safety of your family first. This is more important as we are passing through uncertain times. Adhere to the health and safety protocols – stay safe and drive safe!
If you made a decision to rent a car, you’ve probably made the right choice, but now, with your departure from the rental plot – the responsibility passes into your hands. Keep them clean, sin them at the entrance and exit of the vehicle and if you are traveling with children – do it with double caution. Follow the rules and regulations and above all – drive carefully.