Tuesday, 18 October 2011
Britons Confused About US Car Rental Insurance
While Great Britain and the USA are similar in some ways, there are small differences that can often cause a lot of confusion. For instance, in Britain, when you purchase goods and services, the cost on the price tag is what you pay. The taxes are included and there are no hidden costs.
When Britons and other Europeans rent a car in their homelands, the cost of third-part liability insurance is always included in the rental bill. However, in the USA and Canada auto-rental firms aren’t obligated to supply insurance to renters. Collision Damage Waivers and Loss Damage Waivers are available, but they cost extra, usually up to about $25 a day.
This has caused some confusion with British travelers as it’s estimated that close to 1.5 million of them rent cars while on holiday in America, which represents about a third of all British tourists to the U.S. A company named YouGov recently conducted a study that shows about 75 per cent of British visitors aren’t aware that the insurance policies need to be paid for separately in North America.
According to an article by Market Watch, this can be a costly misjudgement since they could be charged for the entire cost of the automobile if it’s damaged. They could also face huge lawsuits if a third party is injured or killed in an accident no matter who was at fault. What complicates matters worse is the fact that some auto-rental agencies do in fact include the insurance in their costs while others don’t.
A visitor who rents a car in New York may have the insurance included. But when they rent a car in California it might not be added to the bill, but the customer assumes it is because of their previous experience with renting a car in the USA. In addition, some states don’t require liability coverage and some companies UK websites often quote prices with insurance included while their U.S sites don’t include it.
It’s easy to see why there’s a bit of confusion when Britons and other Europeans rent vehicles in the U.S. This also leads to people assuming they’re getting a better deal at one company over another, but don’t realize that the price will go up when the insurance is added on. Whenever you’re renting a car in the U.S. it’s recommended that you inquire about the insurance policies that are available. You may even want to purchase a stand-alone policy from a third party.
These types of policies will cover rental drivers no matter who they rent the car from or what state they’re driving in. If this type of insurance is bought beforehand, then no additional insurance policies need to be bought at the rental agency. Some of these policies also cover carjacking, travel expenses, road rage, and hotel expenses.
