Understanding Insurance Protection Requirements

When renting a car, it’s important to highlight the distinctions between large car rental companies such as Enterprise or Hertz and smaller, independently owned operations like ours. Unlike larger corporations, we do not have the resources to self-insure rental vehicles. This means we require customers to provide proof of insurance when declining our rental coverage.

Traveling to a beautiful island destination should be relaxing and worry-free. At Island Car Rental, we want to ensure your journey is just that! One area that often causes confusion for international travelers is car rental insurance. Here’s a breakdown to help you understand the requirements and make informed decisions:

Why is it different for international travelers?

Many international travelers mistakenly believe their personal car insurance from their home country will automatically cover them abroad. Unfortunately, this is often not the case. Policies may offer limited or no coverage outside of your home country’s borders. Additionally, the minimum insurance requirements on our island may differ from those you’re accustomed to.

Important Note: Island Car Rental currently only accepts auto insurance policies issued by companies within the United States and Canada.

Insurance Requirements:

To ensure you have adequate coverage and comply with local regulations, Island Car Rental requires all customers to have the following:

• Collision Damage Waiver (CDW): This covers damage to the rental vehicle itself in case of an accident.
• Liability Insurance: This covers damages or injuries you may cause to others involved in an accident.

You are required to purchase both CDW and Liability insurance through Island Car Rental unless you can provide proof of existing coverage that meets our requirements.

Accepted Proof of Existing Coverage:

US and Canadian Travelers:

• Auto Insurance: Your personal auto insurance policy may extend to cover rentals on our island, including CDW and liability. Contact your insurance provider to confirm your coverage. Please bring a copy of your insurance card or policy document.
• Credit Card CDW: Many US and Canadian credit cards offer CDW. Provide a copy of your credit card benefits guide as proof of coverage. Remember that credit card CDW usually does not include liability insurance, which you must purchase separately.

Important Information for Australian and New Zealand Travelers:

Unlike credit card insurance offered in the US and Canada, credit card insurance and travel insurance from Australia and New Zealand typically only cover the “excess” – the amount you are responsible for paying in the event of damage or theft. They do not cover the full value of the vehicle.

Therefore, if you are relying on your Australian or New Zealand credit card or travel insurance for coverage, you will still be liable for a significant portion of the vehicle’s value in case of an incident.

We understand that navigating insurance requirements can be confusing. Our knowledgeable staff is here to assist you in understanding your options and ensuring you have the necessary coverage for a safe and enjoyable trip.