Car rental: what insurance to take?
When you rent a car, you are covered at least by the liability insurance included in your rental contract. It is mandatory and covers any material or bodily damage you may cause. She can also play abroad. If you go through a rental platform between individuals, this insurance also exists.
Other insurance may be included in your contract: car theft, fire, etc. It all depends on what the lessor subscribes to. Between individuals, the contract generally comes down to the minimum, that is to say, civil liability.
The car rental contract generally also provides for an excess payable by you if the vehicle is stolen or damaged. This deductible varies according to the lessor but also the type of vehicle. If you rent a sports or luxury car, for example, the deductible is particularly high.
If you rent a car as a long-term rental, this time it’s up to you to take out insurance. It will be required by the lessor when signing the rental contract. At a minimum, you must have a civil liability guarantee.
Do not hesitate to take out additional guarantees (theft, etc.) as if you were insuring your car. Some rental companies also require certain additional items and you will not be able to rent without them. So do your research well in advance.
What is the best car rental agency?
There are many car rental agencies. Suffice to say that it is not easy to choose! Here are some criteria on which to base your comparison:
- The proximity of the agency;
- Rental prices ;
- The proposed insurance ;
- The services offered (one-way car rental, options, etc.).
Note that each year the Carigami car rental comparator publishes a list of rental companies based on customer reviews received during the previous year. Renters are evaluated on 3 criteria:
- Service and reception ;
- Vehicle condition ;
- Speed of service.
However, the price/quality ratio is not taken into account.
How does a long-term car rental work?
Long-term rental, or LDD, is a type of car rental that allows an individual to drive a new car without buying it themselves. The lease generally lasts from 1 to 5 years, with a mileage fixed in advance by the dealer. The price is a formula that takes into account:
- The value of the car ;
- Its value at the end of the long-term rental ;
- The duration of the rental ;
- The expected mileage (usually 15,000 km/year for a petrol model);
- Services included.
Indeed, the maintenance of the car and its insurance can be included in the rental. Your car budget is monthly, identical each month, and therefore allows you to better control it. Some rental companies also offer monthly car rental, an alternative between the short term and the real long term.
Buying or renting a car?
Long-term leasing is an increasingly popular alternative to buying a car. It has indeed certain advantages, especially when you know that a new car loses 25% of its value in the first year of circulation alone. The LDD can thus be 15% more economical compared to a purchase.
There is a type of long-term rental called with the option to purchase or LOA. Also referred to as leasing. It is a sort of credit that allows you to buy the car at the end of the rental.