What is Car Rental Insurance and what does it do?

You might be wondering what Rent a Car insurance is and what it does. Accordingly, when renting a car through a rent-a-car service, you should gather information about the insurance conditions. In this content, we will provide information about Rent a Car insurance. If you're curious about the function of Rent a Car insurance, you can read the article for more details.

What is Rent a Car Insurance?

Rent a car insurance is a guarantee established for rental vehicles. Thus, in the case of potential damage, the insurance covers the damage according to its conditions. However, for the insurance to cover the damage, there must be an agreement between the rent-a-car company and the insurance company. There are specific clauses for such agreements. There are fixed and universally applicable conditions of agreement between every insurance company and rent-a-car firm.

What Does Rent a Car Insurance Do?

When car rental companies get insurance for their vehicles, it means the protection of the vehicle's rights. If the vehicle is stolen, the insurance company will make a payment. Since rental companies can also claim compensation from the insurance, they are not financially harmed.

In the case of an accident, the insurance steps in. These are security measures taken so that the rental companies do not face financial difficulty. In fact, they exist to protect the companies' rights. However, they also partially protect the rights of the car renters. For example, if an accident happens and the other party is at fault, the renters’ rights are also protected.

Not every vehicle in a rental company has Rent a Car insurance. Therefore, working with professional companies will always make your job easier. When renting a car, you should also check if the vehicle has insurance. Insurance is always a safeguard against material and immaterial damage. It provides security for both rental companies and customers. It saves costs and ensures safety against potential negative factors.

Rules for Rent a Car Insurance to Be Valid

While driving, the driver renting the vehicle must not be under the influence of alcohol or drugs. Otherwise, the insurance is automatically void.

The person driving the vehicle is expected to comply with traffic rules. If they are found to be at fault for any material or immaterial damage, the insurance will not cover it. This means the company will cover the damage and collect the debt from the person who rented the vehicle.

If a passenger vehicle is rented and used for transporting goods, the insurance will not cover potential damages.

There are insurance clauses against the risk of theft of the vehicle. In such a case, the insurance compensates for the loss.

In the case of an accident; whether the damage is unilateral or bilateral, the insurance will cover the damage. If the other party is at fault, the insurance company will claim the compensation from the other party's traffic insurance.