In the modern connected world, where businesses are interconnected, it becomes necessary for a businessman to travel. In most of these abroad business trips, you are highly likely to need personal mode of transportation to travel to your destination. Although drivers are almost certainly familiar with the requirements for car hire insurance and other terminologies in abroad countries, you must still understand this type of insurance while travelling as such insurances are different from their native counterparts.
What you must understand and prioritize first is the fact that car insurances are equally important abroad, as they are at home. Regardless of the purpose of the car (whether it is used for domestic purposes, or hired), one must understand that a car is a potentially unsafe machine which is capable of causing grave damages and injuries to you, and at times result in death too! Damages aren’t just limited to you, damages to the car itself should also be considered equally important. The popularity of insuring your car or a hired vehicle has led to the widespread availability of car hire insurance all across the globe. This has made it really convenient for any traveler to insure their vehicle against unexpected cases like theft, damage and others.
Like in any scenario, there are some factors that one must never overlook while choosing any car hire insurance when travelling abroad. Let us take a close look at some to these factors in detail. Car insurance policies are never uncomplicated, they almost always have hidden terms and conditions attached with them; and it is the job of the traveler to find them out to take the maximum value for the premium they pay. Having said that, one must understand that there are two terms in particular that seems to confuse people while choosing a car hire insurance.
The first being CDW or the Collision Damage Waiver provisions; in many countries and especially in the UK, the law makes it mandatory for the insurance company to cover the hired vehicle against all claims made by any third party, and also covers the damages to the rented vehicle inflicted by the hirer as a result of road accidents or rash driving. Sometimes, this cover is also extended to cases where the hired vehicle is stolen.
Some of the factors that should always be kept in mind when choosing car hire insurance is that insurances such as these, most likely exclude damages to the underside of the vehicle, damages to the roof, windows and tires. Any damages to any of the parts mentioned above are the sole responsibility of the hirer, and thus the entire cost of repairs must be borne by him.
The second confusing element while adopting a car hire insurance cover for a hired vehicle is commonly known as the SLI or the Supplemental Liability Insurance. While this is somewhat optional and is usually treated as insurance extra, insurance policies that integrate this are marginally better than the ones that don’t. This is largely credited to the fact that policies that implement SLI can effectively increase the level of the insurance cover, even in claims made by third parties. This is widely used by the people who travel to the States and Canada for official, as well as unofficial meetings.