Purchasing an insurance policy is the responsible thing to do when renting a car. It will keep you covered in case something happens on the road and it may save you quite a lot in case you get into an accident.

It’s important to do the research beforehand and to choose the insurance policy that suits your needs and fits your budget as well. One of the ways to do so is to ask questions at the rental agency itself and therefore get to the bottom of the offer before you decide on getting it for your trip.

What Kind of Documents do You Need to Provide?

This should be your first question so that you’re able to get the insurance policy in the first place. For the most part, you’ll need an international driving permit issued by the International Drivers Association (IDA), a national permit from your own country, and a photo ID.

Some rental agencies may ask for additional documents, and some will determine the price based on when your driving permit was issued. In most cases, younger drivers are penalized since they are considered to be less experienced and therefore more of a risk.

What Does the Insurance Cover?

It’s essential that you’re aware of what the insurance policy you’re purchasing is actually covering. The most common of these is collision damage insurance which will get you covered if you get in an accident. Personal accident insurance covers all the costs resulting from the accident including the medical bills.

Liability insurance covers you in case you get suited by another driver. Personal effects insurance covers the costs of your personal items of yours that may get damaged in the accident. Not everyone needs all of these, but you should know what the options are.

What are the Maximum Damages?

Most if not all insurance policies won’t cover the costs of the damages beyond a certain point. This means that if the cost of the damages caused by the accident goes beyond that amount, you’ll need to bear those payments yourself.

The maximum damages you can get are connected to the premiums you’re paying. The more you pay as a premium the more the insurance policy will cover. You should always be aware of the upper limit however since not many policies will cover the cost of a completely wrecked car.

Do You Need to Pay Deductibles?

Deductibles are part of the damages that you need to pay out of pocket. This protects insurance companies from paying for small and cosmetic repairs. The deductibles are usually set in a fixed amount. For instance, if you have a $1000 deductible, you’ll pay for the first $1000 of damages yourself.

Each rental agency has its policy and some will be better than others. In some cases, you’ll need to pay a deductible regardless of who caused the accident while others take into account if the accident isn’t your fault.

The Difference Between Primary and Secondary Coverage

There are primary and secondary insurance coverage policies. The primary insurance is the main insurance you’re using and it can be transferred to the car you’re renting. The secondary coverage is the one that you sometimes get at a rental agency and it’s made to supplement the primary one.

This means that it will cover only the items and incidents that aren’t covered by your primary insurance. Some rental agencies require you to get their primary insurance and if you want to use such an agency there’s nothing to do about it.

What is Loss of Use?

Loss of use refers to the period when you’re not able to use the car. This is what happens when the car is damaged and undergoing repairs or when it’s being towed to be repaired. It’s important to be sure about the rules regarding loss of use and your payments.

The main question to ask is do you need to keep paying the premiums while you’re not able to use the car. Different rental agencies have different policies and you should investigate this in detail before deciding which agency to choose. A policy that doesn’t require you to pay for the car you’re not using is more generous.

There are many online resources you could use to compare and contrast the reviews of different insurance policy providers. That way you can choose the best one for you and be safe as much as you can since insurance is something you need to get, but don’t have to overspend on.