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How does car rental insurance work?

Don’t know how car rental insurance works? Knowing details about this protection is essential before renting a vehicle . After all, this way the consumer will have greater security in using the vehicle. Follow the text and discover everything you need!

Car rental insurance can be a great alternative.

With it, the consumer is protected from major losses.

This is because, in the event of an accident, the insurer will be responsible for paying most of the damage.

But this type of insurance is not a “separate” contract, by the driver of the car, as common car insurance works .

In fact, car insurance is already associated with the rented car, the user and the car rental company share the costs.

But it is worth mentioning that each car rental company has different rules for the protection of each rental car .

Many put car insurance built into the full price, for example.

Others allow the consumer to choose whether or not to hire the safeguard, leaving them to assume the risk of damage alone.

In either situation, it is essential that the user carefully reads the vehicle lease agreement .

In the agreement, all the rules for activating the insurance or, if applicable, for the personal payment of damages must be included.

Thus, the consumer will be able to compare which is the best alternative coverage for cars .

If the option is to hire car rental insurance, the amounts charged for protection by an insurance company will be part of the vehicle insurance rate .

Coverages vary, but generally include theft, theft and collision.

Soon, we will present other car care alternatives – keep following the text.

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See if renting a car is worth it

Before renting a car on a trip, you need to analyze whether this vehicle rental is really necessary.

Because getting around with a vehicle on a trip has inconveniences quite similar to those that a car owner has.

That is, the driver needs to take into account the expenses with parking, insurance and in some cases with fuel.

And it is worth mentioning that some hotels do not have parking, making the tourist need to spend the night in a private parking lot.

Despite the fact that the car represents more freedom, and makes the tourist not dependent on public transport, with the advancement of transport by application, these end up becoming options as good as renting a car.

What are the rules for renting a car?

To rent a car, it is usually necessary for the individual to meet some prerequisites.

Generally, the driver is required to be at least 21 years old and have at least 2 years of driver’s license.

Some companies also check if there are pending debts on behalf of the user, that is, if he has a “dirty name”.

Usually, a credit card is still requested in the name of the contractor.

The device serves as collateral for unforeseen circumstances.

That is, as a guarantee that the rental company will receive for the service.

See the rules with Porto Seguro, Localiza and other car rental companies.

After renting, it is important to ensure that only the renter drives the vehicle.

If other drivers are anticipated, they need to be listed in the car rental agreement as “ additional drivers ”.

This care is essential because, if an accident occurs while an unregistered driver is driving, car rental insurance will not cover the damage.

That said, you’ll need to be extra careful with the vehicle.

However, with the hiring of rental car insurance , worries will be less.

After all, after an accident, the contracted insurer will reimburse the user’s loss.

But, as already mentioned, auto insurance is not mandatory in these cases.

Still, it comes highly recommended.

After all, the use of the vehicle leads to a series of dangers, such as collisions, theft, theft and other problems.

After an accident without vehicle insurance , the driver who rented the car needs to bear all the damage alone.

Values ​​can be high, especially in the case of complete damage to the car.

number of drivers

The number of drivers greatly impacts the amount of insurance, so the ideal is to reduce it as much as possible.

Car rental companies usually charge more if there is more than one driver, even if it is the renter’s spouse.

Check the rules with Localiza and other companies.

Types of accident with the rented car

There are two basic types of rental car claims that can occur .

The first is the partial claim, a situation in which damages reach up to 75% of the car’s market value.

In this situation, the user needs to pay the insurance deductible.

The insurance deductible is the value of the consumer’s responsibility when repairing the car.

Through it, the insurer seeks to encourage greater prudence on the part of the user, since, after a loss, he will also have to bear part of the value.

Imagine, then, that your rental car suffers a crash.

The cost of its repair will be BRL 3,000, and the insurance deductible for the contracted car is BRL 500.

This means you will pay the $500 deductible.

Meanwhile, the insurer will pay off the remaining R$2,500.

In any case, it is worth mentioning that this rule varies according to insurers.

That’s because, the deductible always exists in auto insurance for “ordinary” cars.

However, your payment method, and even your existence, may change if the car is rented.

We will explain more about this below. Keep reading!

The second type of claim possible is the full claim, or total claim.

In it, the vehicle suffers losses greater than 75% of its market value.

In this type of situation, it is not necessary to pay a deductible.

In addition, compensation is paid to the rental company, so that it can purchase a new car.

The full indemnity of an insurance is also paid in case of theft and theft .

If something like this happens, the car user needs to file a police report and return the document and key to the rental company, if they are still in their possession.

From that moment on, the vehicle rental company will be responsible.

Be careful with the car document

Just like in a car of your own, you need to be very careful with vehicle documents.

But in the case of the rented car, as it is in the name of the company, care must be even greater.

Therefore, it is important to avoid leaving the document inside the car.

Many contracts provide that if the car is stolen with the document inside, the renter is responsible for the vehicle.

That way, I would have to bear all the damage of the theft of the car alone.

And if this is established in the contract, the consumer can only question this decision in court.

This is because if the car is stolen and stopped by the police, it can be released as if the thief were just a renter.

However, if he does not have this document in hand, it will raise suspicions, which makes it easier to recover the vehicle.

Car rental insurance coverage

Protection coverage for a rental vehicle varies from rental company to rental company.

Regardless of the company, however, the insurance company does not cover damage caused by the driver’s misconduct.

That is, if the individual violates traffic laws, he will have to pay all the damage caused out of his own pocket.

Usually, the rental car is protected against damage to the bodywork, collisions, theft and theft.

For coverage of personal accidents and damage to third parties, however, it is usually necessary to purchase additional coverage, which is optional for the consumer.

Personal accident insurance is one that covers the user’s medical expenses after an accident.

The damages to third parties indemnify the loss of individuals involved in an accident with the insured car, such as a crash.

Some renting companies even offer the alternative of insurance with exemption from mandatory co-participation.

Co-participation works like a common insurance deductible and, when exempt, does not charge user amounts in the event of an accident.

Therefore, in these cases, everything we explained about the insurance deductible in the previous topic is no longer valid.

It is also usually possible to hire 24-hour assistance for the car.

As well as protection for glass and tires.

Alternatives vary by rental company, and are suggested as soon as the contract is signed.

All contracted insurance rules are also listed in the vehicle lease contract .

About the deductible, coverage, how to file a claim and more.

It is essential to pay attention to the clauses of the document when renting a car.

So, after any problem, you will know how to act and what assistance to count on.

Personal Accident Insurance (PAI)

A very common coverage for rented cars is Personal Accident Insurance (PAI).

This coverage is not available in traditional auto insurance.

It is intended for the renter of the vehicle or for a passenger.

This insurance indemnifies these victims in case of death, as long as it occurred due to an accident with the rented car, and that these people are inside the vehicle or getting into it.

In addition to paying this indemnity, it also covers medical and ambulance expenses resulting from these types of accidents.

However, in some cases, this type of insurance turns out to be expendable, and needs to be carefully analyzed by the renter, who may ask that this insurance be withdrawn.

This is because the coverage of this insurance is the same as that of travel insurance , which is mandatory for entry into some countries.

This way, the renter may end up paying twice for the service.

PAE or PEP insurance

This insurance protects the renter from possible break-ins in the car, and protects the personal belongings that are inside the vehicle.

Thus, if someone steals the belongings that are inside the vehicle, the renter can activate the insurance.

However, to be entitled to this coverage, you must carefully read the situations it covers and the situations it does not cover, as in some cases it may be considered as inattention by the customer and in these situations he loses the right to coverage.

What to do after an accident?

As soon as a collision, theft or theft happens, the police must be called.

Only with an Occurrence Bulletin in hand can the user request car insurance coverage.

After all, the BO works as a record of what happened.

However, in case of accidents with victims, it is essential, first of all, to contact emergency services, such as SAMU.

This will guarantee help and, if applicable, it will also serve as a record for reimbursement of medical expenses and damages for these people.

Soon after, you will need to activate the car rental company.

The next step-by-step varies according to the company, but generally needs to be started within a maximum of 24 hours after the incident.

Otherwise, the car loses insurance coverage.

A common step is the need to go to the car rental company to sign a claim term.

The consumer will then pay his mandatory co-payment, similar to a regular insurance deductible (if required).

Thereafter, the car will either be repaired or declared a total loss.

Meanwhile, the driver will be compensated for his loss, if the insurance provides for this compensation.

If desired, the user can also rent another car with the car rental company .

Of course, if the company is still willing to offer the service – which is common, unless the driver’s recklessness is proven.

Deductible and mandatory co-participation

As explained, the insurance deductible consists of the user’s liability amounts in the event of an accident.

Usually, the deductible for a rental car comes in the form of a co-payment.

Imagine, then, that you crash the rental car.

The deductible expressed in the contract or, in this case, the express mandatory co-participation, was R$ 300.

Meanwhile, the repair will cost a total of R$ 1 thousand.

In this way, you, the renter, will pay BRL 300 for the repair, while the car rental company and the insurance company will split the payment of the remaining BRL 700.

Before paying the co-participation, it is also interesting that the individual checks the repair costs and the agreed deductible.

Sometimes, the cost of a “private” repair is less than the co-participation amount.

Thus, it may be more advantageous to pay for the restoration out of pocket.

In any case, it is necessary to check the car rental company’s rules regarding this measure.

Also remember that it is unlikely that an accident will go unnoticed by the car rental company .

After all, an inspection is carried out when picking up the vehicle, and another when returning it.

Therefore, it is essential to notify the company of any occurrence within 24 hours.

Thus, the necessary measures will be taken.

Trying to defraud the agreement can lead to more damage and headaches.

It is also worth remembering that car rental insurance usually has a cap on coverage.

That is, a maximum cost that the insurer will pay after a claim.

If the damage exceeds this value, the user will have to pay it out of his own pocket.

Can I supplement the insurance with other coverage? 

When renting a vehicle, it already comes with car insurance. But generally, coverage is basic and the driver can hire other coverage. 

It is important to know that it is not necessary to contract directly with the same vehicle insurer that the rental company hired. You can contact whichever company you like and check out a custom plan, just to top off what you already have. 

For example, if Localiza signed a contract with MAPFRE , you can contact the company and request a more complete plan. 

When in doubt, talk to your insurance broker. Know that this can be done both for renting cars and for renting motorcycles. 

Pay attention, as car rental companies usually offer insurance, protection through insurers that are supervised by SUSEP.

But, it is important to check if any car rental company is offering the services of a company that provides vehicle protection. In this case, SUSEP will not supervise the services. 

How to know if the contracted insurer is good? 

To find out if the insurer is reliable, good, you can do some research. You can ask acquaintances who already hire the company’s services or carry out searches on some sites. 

Among the specialized sites, you can count on Procon, SUSEP, Reclame Aqui. But also with forums, social networks of the vehicle insurance company and the official website. 

Thus, you will be able to see what customers are saying and have a base of how the company’s services are provided.  

Remember that, in addition to verifying the customers’ experience, it is important to find out about the possibility of changing companies, directly with the car rental company. After all, you will not always be able to comment on the insurance company hired when renting a car. 

If this is not possible, talk to the car rental company about the possibility of contracting an outside insurance company.

Pay attention to these details when renting a car

When the renter picks up the vehicle, it is a good idea for him to accompany the vehicle inspection and make sure that everything is in order, so he does not end up paying for damages that were not carried out by him.

So it’s good to look closely at every scratch and mark on the vehicle.

In addition, it is good to check if the spare tire, jack and if the wheel braces are in the car and in good condition, also check the condition of the accessories, the vehicle manual and the amount of fuel in the tank.

For greater security and more evidence, the driver can film the car during the inspection to verify the real state of the vehicle at the time of withdrawal.

Also, when signing the lease, the tenant needs to read it carefully.

This is because it states whether the rent is per day or per kilometer driven, the number of hours per day, the type of car insurance coverage, and what should be done in case of an accident, in addition to informing as it should happen when returning the car.

Now you know how car rental insurance works.

Hire the vehicle with a reliable car rental company , and have a good trip!

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