New: What is personal accident insurance (PAI) in car rental?

If you have an accident in a rental car, you could incur costs aside from the vehicle itself. Personal Accident Insurance (PAI) is a type of rental vehicle insurance that insures drivers of a rental car and their passengers for medical costs, emergency care and accidental death during a rental trip.

In this guide, we'll explain what PAI is, whether you need it and the impact it can have on your car rental journey.

Note: Personal Accident Insurance is not available as part of RentalCover's policies.

Personal Accident Insurance (PAI) explained

Personal Accident Insurance (also known as Personal Accident Coverage) offers cover for medical and death-related costs relating to drivers and their passengers due to accidents in a rental vehicle. PAI is most commonly offered by car rental companies.

A serious injury can become extremely expensive during a holiday, so PAI offers some valuable financial protection for you and your passengers.

What does PAI cover?

PAI policies often cover the following areas:

• Medical expenses: Some medical costs are covered for the driver of a rental vehicle and their passengers following a crash. Covered medical expenses can include doctor’s expenses, hospital stays and emergency room visits.
• Ambulance benefits: Cover for the costs of being transported from the scene of the accident to a medical facility.
• Accidental death: This typically provides a lump sum payout to beneficiaries if an accident is fatal.
• Accidental dismemberment: This typically provides a lump sum payout to you if an accident results in a permanent disability, like the loss of a limb or sight.
• Most accidents: Most unintentional accidents are covered, whether or not you were at fault. Policies may have exclusions for instances of gross negligence.

What does PAI not cover?

Limitations of PAI cover include:

• Personal belongings: Your personal belongings aren't covered by PAI, even if they're damaged in a car accident.
• Coverage limits: PAI coverage limits are usually fairly low. If you run up extremely high medical costs, your PAI cover likely won't cover all your costs.
• The rental vehicle: PAI doesn't offer any cover for your rental car. Instead, you'll need a policy like a Collision Damage Waiver (CDW) to protect it.
• Injury or damage to other people and property: PAI doesn't include cover for injuries or damage to other people and property. A third party rental car insurance policy can offer this cover.

Are there any alternatives to PAI?

While PAI might be offered to you when renting a car, you may have other cover that renders it unnecessary to you. Many travel insurance policies offer very similar cover to PAI.

If you are considering PAI for your rental vehicle journey, you should make your decision about it before picking up your car. This will ensure you have time to weigh up PAI from your rental company against travel insurance you may purchase.

You should also consider how PAI will interact with any personal health insurance you have, privately or through your government if applicable. Read the fine print of your rental company's policy and your personal insurance policy and consider how they work together to cover you.

What are the advantages of PAI?

PAI offers the following advantages:

• Passenger protection: PAI often also extends to anyone travelling in your car. This means you can extend cover to your whole travelling party.
• Peace of mind: Travel in more comfort knowing you have coverage for medical costs you may incur.
• Works alongside your personal health insurance: PAI can offer extra cover that functions alongside your personal health insurance policy. When working together, these policies offer a solid level of cover for your travels. For example, PAI can cover your excess costs, helping you with the affordability of medical costs.
• Cover for accidents you did or didn't cause: With PAI, you're generally covered for any car accident, whether or not you're deemed to be at fault. Driving can be unpredictable, so having this flexible cover can come in handy.

How does a PAI claim work?

A typical PAI claim can work like this:

1. You or your beneficiaries will usually need to contact the rental company's insurance provider and deal directly with them.
2. You or your beneficiaries will usually fill out a claims form.
3. You or your beneficiaries will have to provide documents like:
   
   • A certificate of insurance
   • A receipt of the premium you paid
   • An invoice of medical costs
4. Your claim will either be approved or denied. If approved, you will receive a payout. In the event of a denied claim, you can generally enter into an appeals process.

Cover your rental vehicle with RentalCover

While PAI isn't covered by RentalCover's policies, our cover can still play a vital role in a relaxing, enjoyable trip in a rental vehicle. RentalCover offers insurance for damages to your rental vehicle that's more comprehensive and 50% cheaper than the rental companies†.

This includes cover for items rental companies often exclude, including tyres, underbody damage and more. Plus, there's no excess for you to pay in the event of a claim.

Get a quote today and find out how RentalCover can elevate your next journey in a hire car.

How does the claim process work?

If you or a passenger are injured as a result of driving your rental vehicle, you will need to contact your rental company's insurer directly to place a claim. This will normally involve filling out a claims form, and you will be required to provide the details of your insurance, a receipt of the premium you paid and invoices for your medical costs (hospital and ambulance).

In the case of death, the next of kin can place the claim with the insurer and provide details of the accident.

Hear from our rental car insurance expert

"Personal accident cover can be very appealing when offered at the rental desk. However, you should actually make a call on buying it before picking up your car.

This will enable you to weigh up the PAI your rental company offers against other policies like travel insurance."

Frequently asked questions

Is a Personal Accident Insurance policy worth it?

Personal Accident Insurance cover can be a worthwhile purchase for some travellers. Just make sure you read the fine print and consider the costs and cover of PAI from a rental company, as opposed to other options like travel insurance.

How much personal accident insurance should I have?

The right amount of PAI cover for you depends on other policies you have like personal health insurance, your ability to cover out-of-pocket costs and who you are travelling with.

What is Personal Effects Insurance?

Personal Effects Insurance (PEI), also known as Personal Effects Coverage, offers cover for personal belongings like clothes, electronics and jewellery if they are damaged or stolen in your rental vehicle. You may be able to purchase this insurance through your car rental company, offering additional coverage and peace of mind on your travels.

Like PAI, PEI is not included in RentalCover's policies.