Hiring a car without insurance is simply not a good idea. If any damage occurs to the vehicle, you will have to cover the costs out of your own pocket. This is especially important if you are hiring a luxury car. There are basically 4 options available for comprehensive luxury car rental insurance.
1. Your Credit Card
If you are paying for the rental with your credit card, find out if they provide insurance for luxury car rental and what the provisions are. In other words if they provide only liability insurance or if they will cover the cost of damages for any reason and provide theft cover.
Be sure to contact your credit card provider when hiring a car to find out when you will be covered. Some providers will place restrictions on the coverage such as providing cover only for national or international travel or only for specified periods of time.
2. Rental Agency Insurance
Your luxury car rental agency should provide you with an insurance option when you rent the car. There may be different options available for you to choose from. Keep in mind that all driver’s in the United States are required to have minimal liability insurance to cover 3rd party medical and other expenses in the event of an accident or collision.
Other options may cover costs for damage to the luxury vehicle in the event of an accident but not for other reasons. They may also provide options for theft cover as well as scratch and dent cover. It is highly recommended that you take out a comprehensive insurance policy that covers you for as many eventualities as possible.
3. Your Existing Insurance
Your existing insurance policy may make provision for luxury car rental on a short term basis. The insurance should provide you with the same cover options that you would normally receive when driving your own car.
It may be necessary to find out if the cover amount can be adjusted for the period that you will be driving the car to take into account the increased value of the car in relation to your regular vehicle.
Keep in mind that this option may result in an increase in your monthly insurance rate over both the short and long term.
4. Short-term Self Insurance
You can opt to take out a short-term luxury car rental insurance policy. Be aware that not all insurance providers offer this option as it is considered to be high risk. However, it is the best option to ensure that you are getting the top and most comprehensive cover possible. Remember to take into account the limited payout and ensure that this is equivalent to the value of the car you are hiring.
Taking out insurance for a luxury car rental will add to the costs of hiring the car. However, if any damage were to occur to the vehicle while in your possession, it will be a far more costly concern to pay for repairs or cover the cover the value of the car.