Renting a car in Georgia is the best idea you can think of. With a rental car, you have the freedom to drive wherever and whenever you want. But before your road adventure starts, one of the most important things to decide is whether you need rental car insurance and what it covers.
With so many options to choose from, you need to know what each insurance covers, how it relates to your existing insurance coverage, and which one is right for you. Reviewing your existing insurance coverage is crucial to be sure you have adequate protection without unnecessary purchases. Let us help you to uncover a stress-free travel experience.
What is Rental Car Insurance Coverage?
When you rent a car in Tbilisi, Kutaisi, or Batumi, the rental car company will offer you several types of insurance policy coverage. These insurances are designed to protect the rental car company and you as a renter from financial loss in case of an accident or damage to the rental car.
Still, it’s good to understand the details of your rental car insurance coverage because it’s key to not paying for extra insurance you don’t need or facing unexpected costs.
Collision Damage Waiver (CDW) and Theft Protection
One of the most common insurance options at the rental counter is the Collision Damage Waiver (CDW). Not technically insurance, a CDW waives your financial responsibility for damages to the rental car in case of a covered accident.
It covers the repair costs or replacement of the vehicle if it’s damaged or stolen, minus a deductible. Additionally, collision and comprehensive coverage from your personal auto insurance can extend to rental cars, preventing extra costs in case of damage or theft.
But read the fine print: CDWs don’t cover certain types of damage, like flat tires, lost keys, or damage to the roof or undercarriage.
Theft Protection (sometimes included in the CDW or offered separately) covers you if the rental car is stolen. Again, read the fine print to know what’s covered and what’s not.
Supplemental Liability Protection
Another insurance offered by the car rental agency is SLP. This insurance covers you against third-party claims for property damage or bodily injury if you cause an accident while driving the rental car.
Your individual auto insurance may already have liability coverage, but the rental company’s SLP can give you extra protection, especially if your own policy limits are low.
Personal Accident Insurance
PAI is another one that covers medical payments for you or your passengers if you get injured in an accident involving the rental car.
It also covers ambulance services and accidental death benefits. But if you have health insurance or medical payments coverage under your personal auto policy, you may not need to purchase this extra coverage from the rental company.
You Need Rental Car Insurance. Do You?
Before you buy insurance at the rental counter, check your existing coverage to see if you’re already covered.
Many renters are already covered by their personal car insurance, which typically extends to rental automobiles for personal use.
Comprehensive and collision insurance can protect against damages to the rental vehicle, but liability insurance does not cover the renter’s injuries or damage to the rental car. Let’s discover in details.
Coverage Through Your Personal Auto Insurance
This type of auto insurance often covers rental cars if you have collision and comprehensive coverage on your own vehicle. So, if you get into an accident, your own auto policy would cover the rental car damage minus your deductible. Plus, your individual auto insurance liability coverage also applies to rented vehicles.
As always, check with your insurance provider to see what’s exactly covered and what’s not. For example, some insurance policies may not cover rental vehicles in foreign countries or have lower limits for rental cars.
Credit Card Coverage
Many credit cards offer rental car insurance as a benefit, which covers your rental car damage when you pay with the card.
Credit Card Coverage is secondary coverage, meaning it kicks in after your primary policy (usually your personal auto insurance) has been applied. But some credit cards, like the OneTrip Rental Car Protector, offer primary coverage, so you wouldn’t need to involve your auto insurance if you get into an accident.
Check with your credit card company what’s covered for you as a credit card issuer. Look at:
- The coverage limits
- Types of vehicles covered
- Any restrictions or exclusions (e.g., not covering certain types of cars or rentals in certain countries).
Choosing the Right Insurance Coverage
When renting a car in Georgia, you need to choose the right insurance coverage for you. It’s important to review your existing insurance policy, as you might already have sufficient protection through your current car insurance policies or credit cards. Here’s how to decide what to choose:
Your Possible Risks
Ask yourself the following questions to get a clear understanding:
- What type of rental vehicle do I plan to rent?
- Where will I drive?
- How long will I have the rental car?
If you are driving in urban areas with heavy traffic, you may want more extended coverage.
If you’re taking a short trip and have strong coverage through your own auto insurance or credit card, you may not need to purchase additional coverage for this trip.
Rental Car Insurance Options
Be mindful and compare the cost of rental car insurance options with the out-of-pocket costs you’ll face with your existing coverage.
Sometimes, the peace of mind the rental company’s coverage offers is worth the extra cost, especially if your personal auto policy has high deductibles or low limits.
Additional Insurance
You may want to consider extra coverage if you’re concerned about specific risks, such as:
- loss of personal belongings
- medical payments.
For example, Personal Effects Coverage covers your property if they’re stolen from the rental car. This is especially useful if you’re traveling with valuable and important things.
How to Save on Rental Car Insurance
While you need the proper coverage, here’s how to save on a rental car insurance policy without sacrificing protection:
- Use Your Own Insurance:
- If your personal auto policy is sufficient, you may not need to buy insurance from the rental company.
- Personal car insurance policies typically extend coverage to rental cars when used for personal purposes.
- Make sure your insurance covers rental vehicles and check for exclusions first.
- Comprehensive and collision insurance can protect against damages to the rental vehicle, but liability insurance does not cover the renter’s injuries or damage to the rental car.
- Consider any potential gaps in coverage and whether you need supplemental protection options.
- Use Credit Card Benefits:
- Many credit card companies like Revolute Metal Card and American Express Platinum Card (Europe) offer rental car coverage as a cardholder benefit.
- Use a card that offers primary coverage so you don’t have to involve your auto insurance and potentially increase your premiums.
- Standalone Policy:
- Some insurance companies offer standalone rental car insurance policies that are cheaper than the rental desk coverage.
- These policies usually include extended coverage for damage, theft, and liability.
- Bundle Coverage:
- Some rental companies offer discounts if you purchase multiple types of coverage together.
- For example, bundling collision coverage with personal accident insurance might reduce the overall cost.
Car Rental Insurance Policy: Hertz vs. Avis vs. Enterprise
Let’s explore the different types of rental vehicle insurance offered by major rental car companies like Hertz, Avis, and Enterprise.
These prices are estimates and can vary depending on the location, type of vehicle, and other factors. Always check the specific terms with your car rental agency.
| Car Rental Company | Collision Damage Waiver (CDW) Cost per Day | Supplemental Liability Protection (SLP) Cost per Day | Personal Accident Insurance (PAI) Cost per Day | Total Daily Insurance Cost |
|---|---|---|---|---|
| Hertz | $10 - $30 | $15 - $20 | $5 - $7 | $30 - $57 |
| Avis | $11 - $29 | $13 - $18 | $6 - $8 | $30 - $55 |
| Enterprise | $12 - $35 | $12 - $17 | $4 - $6 | $28 - $58 |
Notes:
- Collision Damage Waiver (CDW):
- This policy covers damage to the rental car in an accident. The cost typically varies based on the car’s value and the rental location.
- Unlike personal car insurance, which may extend comprehensive or collision coverage to rental cars, CDW specifically covers damages to the rental vehicle.
- However, personal car insurance policy often does not cover your injuries or damage to the rental car, leading some to consider CDW for additional protection.
- Supplemental Liability Protection (SLP):
- Provides additional liability coverage beyond what is required by law.
- It is often recommended for better protection against third-party claims.
- Personal Accident Insurance (PAI):
- Covers medical expenses for you and your passengers in case of an accident.
- It may also include coverage for accidental death.
- Total Daily Insurance Cost:
- The combined cost if all three types of insurance are purchased.
You’re Covered
When renting a car in Georgia, you need the right coverage to avoid unexpected costs and stress. Whether you use your own auto insurance, including collision and comprehensive coverage, credit card benefits, or purchase extra coverage from the rental company, knowing your options will make you a smooth and worry-free driving experience.
Always read your policy. Ask at the counter. Choose the right coverage for you. Happy travels!