- Collision Damage Waiver (CDW): CDW typically provides coverage for damage to the rental car caused by collision, theft, vandalism, or other covered accidents. It acts as a type of deductible reduction, limiting the amount the renter is liable for in case of damage. Various insurance companies and the car rental company itself can provide CDW coverage.
- Liability Insurance: Liability insurance protects the rental company and the driver against claims for bodily injury or property damage caused to third parties while operating the rental vehicle. It is mandatory in most jurisdictions. Rental companies generally carry liability insurance, and it may also be offered as an add-on coverage for the renter to increase the coverage limits.
- Personal Accident Insurance (PAI): PAI provides coverage for medical expenses incurred by the driver and passengers in the event of an accident. It may be offered by the car rental company or by external insurance providers.
- Theft Protection: Theft protection covers the rental car in case of theft or attempted theft. It can be provided by the rental company or purchased as an additional coverage by the renter.
It's important for car rental customers to carefully review and understand the insurance coverage options offered by the car rental company and choose the coverage that best meets their needs and level of risk. It is also advisable to compare insurance options and rates from different rental companies before making a reservation.
