When renting a car, not all drivers realise that they may need rental car insurance – or even that it is an option. Some drivers don’t regard it as a necessity, while others always opt to take it. What is rental car insurance, is it necessary, and what does it cover?

Rental car insurance

Rental insurance is a term that describes several different types of cover made available to customers when renting a car. Some rental agencies offer it as an added extra, while it is mandatory for others. There are four main rental insurance options:

  • Loss damage waiver (LDW): If you take this option, you waive your responsibility for total loss, accident damage, theft, vandalism or environmental damage.
  • Liability cover: These policies cover damage and injury suffered by other drivers if you should cause an accident.
  • Personal accident cover: When you purchase this cover, you are insured for injuries that you or your passengers might suffer.
  • Personal effects coverage: If your personal items, such as electronics, clothing or baggage, are stolen from the vehicle, then this will cover the cost of replacing or repairing them.

Note that South African car rental agencies are technically not allowed to offer insurance as such, so their cover will usually be offered by another name, such as waivers or cover. Some basic cover is often included in the cost of rental.

Do you need rental car insurance?

You seldom really need rental car insurance, unless you want a little extra peace of mind. However, before accepting it, check your own car insurance policy. There may be a provision for rental cover in your current comprehensive motor insurance plan.

How much is rental car insurance?

Optional insurance cover, depending on which options you take, usually cost between R30 and R500 per day. Personal accident cover can be purchased at the counter for around R30 per day, while Collision Damage Waivers can go up to around R500. 

Earn-a-Car offers pre-owned vehicles in top condition, with manageable monthly payments. With our rent-to-buy car finance option, you have the opportunity to get behind the wheel of a car you will eventually own! Instead of considering buying a new vehicle, come to Earn-a-Car for a rent-to-own option. To find out more about how renting a car can save money, as well as other considerations, such as rental car insurance, contact us today.