Car rental insurance is a never-ending headache for first-time renters. Just picture yourself arriving at the rental counter to pick up your car and seeing a rental agreement packed with tiny print — it’s enough to make your head spin.
For first-time renters especially, what exactly does car rental insurance cover? Type A? Type B? And what on earth is Type C collision coverage? It’s a genuinely confusing topic.
First of all, the following is really important!! Really important!! Really important!!
Price matters when you rent a car, but what your insurance actually covers deserves even more attention.
Collision coverage in car rental insurance comes in four types: A, B, C and D
So what are the differences?
Collision coverage – Type A collision coverage
Type A: broadly speaking, it pays out for just about any impact — even if someone hits you out of nowhere and drives off, the insurer still covers you. Unfortunately, rental cars generally don’t carry this coverage. ▼
Collision coverage – Type B collision coverage (also called vehicle collision coverage)
Besides car-to-car accidents, damage the driver causes alone (hitting a utility pole, a median strip, etc.) is also covered. ▼
Collision coverage – Type C collision coverage (also called car-to-car coverage)
It only pays out for accidents involving a collision with another “vehicle”! ▼
Collision coverage – Type D collision coverage
Same as Type C, but it only pays up to a set amount (the cap varies by insurer). That’s why it’s also called “capped car-to-car coverage.” The premium is usually cheaper. ▼
Also, if you’re unlucky enough to have a traffic accident in your rental car, you must call the police, take photos of the scene and have a scene diagram drawn up — only then can you file a claim on your rental insurance! ▼
Heads up! Heads up! Collision coverage lets you file a claim after a traffic accident, but there are still situations where no claim can be made. Natural disasters, for example — a roadside tree blown down by a typhoon landing on your rental car, flooding, or falling rocks from an earthquake hitting your rental car. These all fall under natural disaster coverage and aren’t included in collision coverage.
And if your rental car is parked outside and some rotten thief makes off with car parts, the stereo and so on… those can’t be claimed under collision coverage either, because they fall under parts coverage. ▼
Finally, a reminder once more: rental insurance really matters, so double- and triple-check it before you rent.
If this helped you understand car rental better, feel free to share! ▼
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This article was translated by AI from the original Chinese version.
