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What Are Rental Car Insurance Types?

by Carmen PickelOctober 2, 2021, ,
What Are Rental Car Insurance Types?

Rental car companies offer a variety of insurance options for their customers. Suppose you’re looking to purchase rental car insurance. There are four types of coverage to choose from: liability coverage, personal accident insurance, personal effects coverage, and loss damage waiver.

All of the types are briefly discussed below.

Liability Coverage

Liability insurance protects against claims resulting from injuries and damage to people and property. It covers legal costs and payouts for which the insured party would be found liable. Provisions not covered include Intentional damage, contractual liabilities, and criminal prosecution.

Personal Accident Insurance

Personal Accident Insurance/Personal Effects Coverage (PAI/PEC) is offered at the time of rental for an additional daily charge. If accepted, the PAI contained in the policy provides renter and renter's passengers with accidental death, accident medical expenses, and ambulance expense benefits.

Personal Effects Coverage

Personal Effects Coverage (PEC) is an optional additional coverage that is sold at the rental desk. Usually, it covers the loss or theft of personal belongings of the principal driver, additional driver, and any member of the principal driver's immediate family. This coverage can be added to your reservation when you book online or at the time of pick up from our location. 

Loss Damage Waiver

Loss Damage Waiver (LDW) is an optional product that waives your financial responsibility for any loss or damage incurred to the rental vehicle, provided you have not violated the Rental Agreement's Terms and Conditions. LDW can be a wise option for renters traveling in countries without full coverage insurance on their vehicles. It also provides peace of mind when renting expensive luxury cars or exotic models. 

Renting a car can be an expensive endeavor if you don’t have the proper protection in place. That’s why it is important to understand what each type of rental car insurance covers so that you can make an informed decision about which one is best for your needs. 

To learn more about car insurance and its various types, check out Lakeville Motor’s blog section.

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