The Ins and Outs of Fully Comprehensive Car Hire Insurance

Renting a car can be an exciting yet stressful experience. You get the freedom to explore a new destination on your own terms, but also have to navigate confusing insurance options from the rental company. Should you purchase their overpriced and limited protection or rely on your own car insurance from home?

The best solution is to get fully comprehensive car hire insurance. This specialized policy gives you complete peace of mind for a reasonable daily rate. In this guide we’ll explain what fully comprehensive cover includes why it’s worth the small investment, and provide tips for finding the right plan for your next rental car adventure.

What is Fully Comprehensive Car Hire Insurance?

Fully comprehensive car hire insurance provides extensive protection against financial losses if your rental car is damaged or stolen It combines the core benefits of a collision damage waiver and supplemental liability insurance in one simple policy

Here’s an overview of what’s included

• Collision Coverage: Pays for repair or replacement costs if you damage the rental car. Covers up to the actual cash value of the vehicle.

• Loss/Theft Protection: Reimburses you if the rental car is lost or stolen.

• Third-Party Liability: Covers injury or property damage you cause to others if you’re found legally responsible.

• Roadside Assistance: Provides help with lockouts, flat tires, jump starts, and towing.

• No Deductible: You pay nothing out of pocket for covered losses. The insurer pays the full claim amount.

• Primary Coverage: Pays first in the event of a claim before your own car insurance kicks in.

With this extensive protection, you can drive with total confidence knowing potential accidents or issues won’t lead to major out-of-pocket costs that disrupt your travel budget.

Why You Need It

Fully comprehensive insurance is so important for renters because it fills crucial coverage gaps. Let’s examine where you could be exposed without it:

Your Auto Policy Has Limitations

Most personal and business car insurance policies at home provide some coverage for rental cars. However, the level of protection varies widely. For example, collision may only cover up to the actual cash value of your own car, leaving you to pay the difference for a more expensive rental. And liability limits likely fall short of what’s needed in another country.

The Rental Company’s Insurance is Overpriced

If you decline the collision damage waiver (CDW) and other offerings from the rental company, they will charge your credit card for the full price of repairs or replacement. Daily rates for supplemental insurance are often $10-30, which adds up quick. Fully comprehensive policies give you the same benefits for a fraction of that price.

Large Deposits are Required

Without your own insurance or the rental company’s coverage, you may have to leave a deposit up to the entire value of the car. Coming up with $25,000-$50,000 in cash or having it blocked on your card is inconvenient at best.

Coverage Has Gaps

Even if you buy the rental company’s protection package, it may exclude important risks like tyre and windscreen damage, undercarriage, roof, and clutch. Fully comprehensive plans have no confusing exclusions.

Local Laws Are Complex

In some destinations, the law requires you to purchase separate third-party liability insurance. Fully comprehensive policies include this coverage so you don’t have to hunt for the right product.

Clearly, relying solely on your own insurance or the rental company leaves you exposed. For less than $20 per day, fully comprehensive hire car insurance keeps you protected from all angles.

Tips for Buying the Right Plan

The key to getting great fully comprehensive cover is working with a specialized provider like Allianz Travel Insurance. Here are a few tips to get the right plan:

• Compare Insurers: Look for reputable companies with strong customer service and claims handling reputations.

• Examine Policy Limits: Make sure liability and collision/loss limits meet your needs. $1 million is a good benchmark for liability.

• Find Worldwide Coverage: International rentals require global coverage without geographic exclusions.

• Seek Primacy: Choose primary policies that pay first before your other insurance kicks in.

• Add Roadside Assistance: Roadside benefits like jump starts, locksmith services, and towing provide useful protections.

• Review Exclusions: Avoid policies with exclusions for things like weather events, political unrest, or driving on unpaved roads.

• Check Ratings: Select companies with excellent financial strength ratings from firms like A.M. Best.

The right insurer will make it easy to compare plan options and customize the policy to your exact travel situation.

Drive Safely and Save

The beauty of fully comprehensive car hire insurance is you can drive with total peace of mind no matter what happens. However, there are a few precautions to take so you avoid claims in the first place:

• Thoroughly inspect the car at pickup and note any prior damage. Take photos of the odometer and existing scratches/dents before driving away.

• Refuel the tank before dropping the car off to avoid excessive refueling fees.

• Drive conservatively and obey all traffic laws, especially in unfamiliar destinations. Avoid excessive speeding.

• Don’t drink and drive. In some countries like Australia, the blood alcohol limit is .00%. Don’t risk it.

• Park in secure, well-lit areas and never leave valuables in the car unattended. Keep the doors locked.

• Avoid driving off-road or on unpaved mountain/country roads which could lead to damage.

By combining fully comprehensive cover with safe driving and attentive precautions, you can ensure an incident-free and stress-free rental experience anywhere in the world. The small daily investment provides peace of mind that’s well worth the price.

The Bottom Line

Renting a car should be an exciting adventure, not a financial risk. Fully comprehensive insurance makes it possible to hit the open road with confidence in destinations near and far. For less than $20 per day, specialized plans fill the gaps in your own policy and skip the rental company’s overpriced offerings. Work with leading global insurers to find the right plan for each journey, then drive safely to maximize coverage. Fully comprehensive insurance lets you explore at your own pace without worrying about potential accidents or issues down the road.