It is important to realize that the laws and regulations in your home country may not apply in another. If you are heading overseas for that long overdue vacation, make sure that you understand the difference in legislation between your home country and your holiday destination.
Unlike in developed nations, car insurance is not mandatory in other states. The rental car that you are driving in a foreign country may, in fact, be uninsured. This will open up a host of legal implications for you.
Car Insurance for Rental Car
Many travellers place their trust fully in their travel agent, car hire company, and hotel concierge. But if you do not ask the relevant questions and do your own research ahead of time, you could walk a legal minefield when you drive abroad. Car insurance not only protects the vehicle owner, it also protects the driver. And if you are buzzing around in unknown territory in your rental vehicle, you will need as much protection as possible as you may be at a higher risk of an accident than the local drivers.
Despite the fact that you don’t own the rental car, you may end up being held solely responsible for any implications that may arise from a traffic accident while you are driving the car. Car insurance should protect you against these eventualities. However, without insurance, you are open to litigation that could turn a pleasant holiday into a nightmare.
Insurance Coverage that You Should Have
It is always important that you ask your rental company if their vehicles are insured. It is equally important to look at any additional coverage that can protect you. While your main focus should be the cost of vehicle damage, both on the car you are driving and any other cars involved in a traffic accident, you should also ask about public liability.
In the event that you knock a pedestrian, damage private property, or injure the occupant of another vehicle in a car crash, you may be liable for the associated costs. This could easily cost large sums of money especially if permanent disability, death, and extensive property damage is involved. Usually, the liability would be paid by the public liability portion of your car insurance policy. But without insurance on your rental vehicle, it the driver who is responsible to pay the expenses, irrespective of the fact that you are not a citizen of the country.
Most people go on holiday on a budget. Given the tough economic times, we still want to experience the joys of a vacation abroad. But even if you are on a tight budget, do not forsake essential car insurance cover on your rental vehicle. Otherwise, an accident can financially cripple you or send you to jail. Ensure that you top up with the best car insurance cover that you can afford. You may have to sacrifice some of the holiday luxuries, but you can at least enjoy your vacation without fearing the consequences of an accident.