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Most car rental companies offer a variety of insurance coverages including coverage against damages to the vehicle, its occupants and third parties.

The most commonly available insurance coverage for car rentals are:

  • Loss Damage Waiver (LDW) also known as Collision Damage Waiver (CDW): This coverage typically waives financial responsibility if the rental car is damaged or stolen. It also covers loss-of-use charges while the rental is in the shop, towing charges, and related fees.

    If you already have comprehensive and collision coverage on your own car insurance policy, the value of your rental car is likely covered even in the event of a total loss. You'll only be responsible for the deductible, plus any added fees imposed by the rental company.

  • Additional Liability Insurance (ALI) also known as Liability Coverage: This coverage protects against potential lawsuits should the authorized driver, while behind the wheel, injure someone or cause damage to someone else´s property.

    In the United States, Liability Coverage is mandatory in 49 states (exception: New Hampshire) but the coverage limit itself will vary by state. Check each state’s minimum required limit here and avoid inconveniences during your trip.

  • Personal Effects Coverage (PEC): This coverage insures any personal items kept in the rental vehicle.

    If you have homeowner’s insurance, renter’s insurance or condo policy, your personal items will generally be covered even if they are stolen from a rental car. You should, however, always review your policy documents in order to be sure of what it covers before you elect or decline this coverage.

  • Personal Accident Insurance (PAI): Personal Accident Insurance helps you handle the medical and out-of-pocket costs that add up after an accidental injury. This may include emergency treatment, hospital stays and medical exams, as well as other expenses you may face.

    If your personal health insurance already covers accidents, then you most likely won´t need to purchase this coverage at the rental location. You should, however, always review your policy documents in order to be sure of what it covers before you elect or decline this coverage.

Optional coverages can be added to your reservation during the booking process or directly over the rental counter. It’s important, however, to stress that the inclusion of any additional coverages offered over-the-counter is entirely up to you.

In your Booking Confirmation Voucher you’ll find a complete description of all the insurance coverages included in your hired service package. When picking up your vehicle, make sure to have understood the rental conditions as well as the details of what you will be charged for before signing the rental agreement.

Should you suffer any mishaps while enjoying your rental car, you should always follow the procedures established by the rental company for such cases. Common practices include, presenting an incident report/police report and filling in the rental company’s accident form within 24h of the incident, amongst others. This information is readily available at the rental location as well as in the rental agreement itself.

Renting a car under 25 is possible, however, because drivers under 25 years of age are statistically more prone to getting into an accident, most rental companies will charge you an underage fee. Some car rental companies may even consider the minimum age to rent as being 21 but their daily underage surcharges tend to be even steeper.

Furthermore, if you’re under 25, you will typically only be allowed to rent smaller cars such as vehicles categorized as Compact or Economic. Most car rental companies will, altogether, not allow you to rent larger categories such as SUVs, Minivans and Luxury Vehicles.

If you are under 25 and interested in booking a vehicle or if you´re just in doubt about possible terms and conditions, you can reach out to us through our Booking Center. We´ll be happy to provide all the necessary information regarding rates and conditions for your rental specifications.

When signing a car rental agreement, most rental companies will request a security deposit, sometimes referred to as a credit hold, which will serve as a warranty for the car rental company. The requested deposit amount will vary depending on the vehicle´s category and rental period as well as on the rental company itself.

When using a credit card, the amount will not be charged directly, only put on hold. Once you return the vehicle, the rental company will request the hold to be removed. The wait-time for the hold removal to take effect, however, will depend solely on your card´s network.

As for cash and debit security deposits, the amount will in fact be charged by the rental company but returned after the vehicle itself is returned.

Slightly larger than a passport, the International Driving Permit (IDP), sometimes referred to as an International Driving License (IDL), is basically a multi-language translation of your personal driver’s license. Whether or not you’ll be required to have and hold an IDP during your trip, however, varies quite a bit between countries. In any case, in order for it to be valid, your IDP must always be accompanied by your own driver’s license.

In the United States, foreign driver’s licenses are widely accepted so long as the license’s language uses the same alphabet as the English language. The most important thing to ask yourself when considering an IDP is, “If I get pulled over, will the police officer be able to understand the information on my driver’s license?”. If the answer is no, an International Driver’s Permit is highly recommended.

To avoid any inconveniences, contact our Booking Center and find out if the country you are traveling to requires an International Driver’s Permit. We’re always happy to help.

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