Knowing about insurance coverage between Uber Carshare and traditional rentals is very important for renting a vehicle. Both options are suitable for anyone who needs a ride in the short or long run. But how do these companies insure their cars? How do the insurance options and coverage of Uber carshare and traditional rentals differ?
It doesn’t matter if you ‘rent’ an Uber Carshare or a traditional luxury rental; insurance will come with the price, and it is something you shouldn’t ignore. In both situations, you may not be required to deal directly with insurance companies; however, somehow, you will be paying for insurance.
You may think since you don’t own the vehicle, insurance doesn’t concern you, but that’s not true. Insurance is your ultimate lifeline when you rent a car, regardless of whether it is a carshare or a rental, so this article is a must-read for the most.
Read the following article to understand your insurance options with both Uber Carshare and traditional luxury rentals. See the comparison between liability limits and deductibles and the claims process. Find out about all these things and more below.
Let’s start with the available insurance options with each service…
Insurance Options – Uber Carshare vs. Traditional Luxury Rentals
All Uber Carshare trips include vehicle protection and auto liability insurance. If you damage the car, you must pay only your deductible, which is also called an ‘Excess’ in some countries. You’re responsible for what happens with the vehicle from pick-up to drop-off, so you should keep it safe.
A car rental agency can offer you 4 insurance options. You could benefit from loss damage waiver (LDW), personal accident insurance, personal effects insurance, and liability coverage. In other words, many insurance variations exist when using a traditional luxury rental. Again, these can slightly depend on your country and the company you rent from.
What’s also interesting is that with some traditional luxury rentals, you don’t pay for insurance if you already have one. To clarify, if you pay insurance for your own car, and if that policy covers your rental vehicles, you are covered for the rental too. In that case, your insurance for personal vehicles extends to rentals, too, so you should be good to go.
Note, if you are a regular renter, having an insurance policy that covers rent-a-cars would be cheaper, too. If you are not a regular renter, that wouldn’t be cost-effective, as such insurance policies are more expensive than traditional policies that cover your own car.
Tip: we previously covered luxury car availability.
Insurance Coverage – What Do They Cover? What Do They Don’t Cover?
Uber Carshare insurance covers damage to the vehicle booked and loss of the vehicle due to theft or fire. There’s also coverage for recovery, towing, storage charges, and third-party loss or damage. Every trip also includes 24/7 roadside assistance.
Usually, rental vehicles come with 3 types of coverage. These include the collision damage waiver (CDW), theft protections, and third-party liability. Now that you know what’s covered, let’s see what some of each service’s insurance options don’t cover.
|Traditional Car Rental Company
|Driving on the beach or through water
|Damage to the car’s engine
|Using the car to tow
|Losing the key
In most cases, regardless of having the insurance, you are fully responsible for those mishaps, costing you out of pocket.
Coverage For Personal Belongings – Uber Carshare vs. Traditional Luxury Rentals
With Uber Carshare, you don’t get coverage for personal belongings. If you keep something valuable in the car and it’s stolen, the company won’t pay for it. The same goes if your possessions get damaged or you lose them while ‘renting’.
If you rent a traditional luxury rental, you have the option to ask for Personal Effects Coverage (PEC). This covers the theft or loss of personal possessions while renting. The people who benefit from this type of coverage are the driver (primary renter), their family, and the additional drivers.
From the personal belongings coverage point of view, it’s always better to go with traditional luxury rentals. This advice holds true, especially if you must use the rental to transport something of value. If you’re not in this situation but own expensive things, get PEC for your peace of mind.
Comparing Liability Limits and Deductibles – Uber Carshare vs. Traditional Luxury Rentals
Uber Carshare insurance liability limits are $50,000 per person injured and $100,000 per accident if injuries occur. When it comes to property damage in an accident, the liability limit is set at $25,000. As far as deductibles, if your claim is accepted, these are between $500 and $3,000.
Liability limits for traditional luxury rentals are usually set at $5-$20 a day. But how much you pay depends a lot on what your personal auto insurance covers. When it comes to deductibles, these will also start at $500 but can move higher to up to $5,000.
Comparing liability limits and deductibles at Uber Carshare and traditional car rental companies, luxury rentals are more advantageous. Deductibles may be higher sometimes, it’s true. However, this doesn’t happen frequently and only in special situations.
Additional Insurance Options – Uber Carshare vs. Traditional Luxury Rentals
When signing up for Uber Carshare, insurance is included in your membership. If necessary, you can ask for additional insurance to cover you in certain situations. For instance, you’re covered if responsible for any damage to the vehicle or a passenger’s injuries and property.
If you drive a traditional car rental company vehicle, ask for car rental travel or international car rental insurance. If you have a Premium credit card, you may benefit from additional primary auto insurance coverage. But note you need to book the rental using your credit card for this benefit.
As you can see, you can ask for additional insurance with both Uber Carshare and car rental companies. You can opt for one according to what type of additional insurance you need or want. Note that car rental companies cover international travelers too, which most Carshare companies wouldn’t do that.
What’s Mobility Mutual Damage Cover?
Uber Carshare offers Mobility Mutual damage cover for third-party loss, flood, fire, hail, theft, and damage in Australia. If you damage or lose the car during your booking, you are liable for replacement or repair costs. Mobility Mutual covers the repairs’ excess and organizes service operations.
With car rental companies, you can’t benefit from Mobility Mutual, but the specific insurance company (or underwriter) each rental company uses. In other words, you are well covered for any damages or car theft.
With both services, you won’t be responsible for any wear and tear.
Note that Mobility Mutual, which is offered by Uber Carshare, may not cover some damages to the vehicle. To clarify, you will be the only one responsible for such repair on the car. The same goes if you use non-original or secondhand manufacturer equipment and parts.
Insurance Requirements and Documentation – Uber Carshare vs. Traditional Luxury Rentals
The Uber Carshare app and website ask you for certain documents when enrolling on their platform. Your ID and driver’s license are not enough, so you need insurance documentation too. Luckily, the company will take care of insurance documents on your behalf.
If you rent from a car rental company, you must inform them if you have personal auto insurance covering rental cars. If you do, provide the documentation that attests to it and your ID, such as your driver’s License or Passport. In case you don’t, they will offer you insurance when you present your ID and driver’s license.
In most cases, it doesn’t matter if you have personal auto insurance when driving with Uber Carshare. The company’s requirements are that you pay a fee for your ride insurance, at least for peace of mind. Therefore, the best idea is to rent through car rental companies if you pay for personal vehicle insurance, which covers rentals.
Real-time Comparison Of Insurance Costs And Pricing
You can expect to pay about $200 for 30 days and $2,000 per year for Uber Carshare insurance. These prices are quite high and may depend of your location. Additionally, you can opt for rideshare insurance, which can cost you from $30 a month.
For general liability coverage of $1 million, you can pay a traditional car rental company $50 a month. If you don’t want to pay monthly, you can opt for $600 a year.
To better understand why renting from a traditional rental is more advantageous when it comes to insurance, see the table below.
|Traditional Car Rental Companies
|High monthly expenses for basic insurance
|Cheap general liability coverage
|Expensive additional insurance options
|Additional insurance only for special situations
|You need contingent coverage between trips
Claims Process – Uber Carshare vs. Traditional Luxury Rentals
If you have an accident while driving your Uber Carshare rental, you first need to make sure everyone is alright. After calling the emergency service and the police, contact Uber to inform them about what happened. They will guide you and say what you should do next.
The same goes for traditional luxury car rentals. Don’t do anything after an accident when renting from a car rental agency. The company informs you if continuing your trip is safe or if someone should assess the damage.
Uber Carshare or the car rental company will ask you questions about the accident during the claims process. Don’t lie, as insurance agents always discover the truth and lying can get you into serious trouble.
Note that you may need to pay money out of your pocket depending on circumstances. In the case of a covered matter, you may required to pay full excess out of your pocket. However, if you have an excess cover, you can claim that excess back. If not, that is truly out of your pocket.
Remember, regardless of the service you use, the insurance claim process is likely to be stressful when and if you have an accident. This is when the real strength of the insurance policy is tested, and in our experience, the traditional rentals win here over carshare insurance schemes.
What Information Do Uber Carshare vs Car Rental Companies Ask For?
Before and after each trip, borrowers must take photos of their rental to prove the vehicle wasn’t damaged. According to these photos, Uber Carshare and other car rental companies determine what happened with the car and who’s responsible. Report any damage that happens during a booking as soon as possible.
Uber Carshare or the car rental company will check your photos to see who is responsible for the damage. After, they will arrange repairs with one of their specialists or a specialist you know. Uber Carshare charges a minimum of $25 per day if the vehicle is not available due to repairs.
To sum up, the photos and videos you take of your Uber Carshare or traditional luxury rental at the collection of the car are the most important. Someone from insurance will also check them and take some photos themselves. Note that what you say won’t matter that much, so only photos and videos stand as the legally binding proof.
User Reviews And Experiences On Satisfaction After An Insurance Claim – Uber Carshare vs. Traditional Luxury Rentals
Analyzing what customers say about their insurance claim experiences with Uber Carshare, things don’t look that good. Many on TrustPilot call the company a disgrace and says their insurance is impossible to deal with. Some mention they spent months discussing insurance with them through emails and over the phone.
Compared to Uber Carshare, negative reviews about insurance claims after renting from a traditional car rental agency are quite reasonable. From our own experience, I can say these companies have great policies in place when there’s an incident. If you don’t want to stress at all after insurance claims, choose a reputable car rental service like Rent-A-Prestige.
Seeing that, generally, customers are more satisfied with car rental companies after insurance claims, you should reconsider Uber Carshare. It’s true this company sometimes offers better prices on rentals, but what will happen in case of an accident?
Keep in mind that costs after an insurance claim can ruin you if you make the wrong choice.
Knowing everything about insurance between Uber Carshare and traditional rentals, you can now make your decision regarding which service to use. Opting for car rental companies because they offer more affordable insurance options is not wrong. On the contrary, it shows that car rental agencies care about their customers, and the relationship can be more personal.
Before renting, analyze all insurance costs and compare prices. Don’t forget that insurance will cost you depending on the type of vehicle you rent too. The newer the car and the more features or amenities on it, the higher its insurance costs will be.
The ultimate value of the insurance policy will be known when the reality hits after an accident or mishap. Until then, you are sold just a ‘dream’. Be mindful!