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  Renting a Car during Your Year-end Vacation?

Year end is a period where many Malaysians let their hair down and go for vacation with family and friends. Instead of driving, many opt to rent a car once they reach their vacation destinations to visit the places of interest in the area.


Renting a car may be fun and have its own advantages. However, you must ensure that the vehicle you rent is properly insured, namely insured for commercial purpose (for hire).  The motor insurance policies normally purchased by private car owners provide coverage against losses strictly out of personal use only. Once the car is rented out, the vehicle is not for personal use anymore.  Instead, it is rented out for profit, or commercial purposes. Hence, while the car is being rented out, its private
motor policy is not effective i.e. no compensation will be paid in the event of an accident or losses while it is being rented out. Often, in the event  of losses, the car owner will request further payment from the hirer to  cover the losses, in addition to the rental amount, since the losses is not  covered  by  his  insurance  policy. The appropriate motor policy will provide you protection similar to private car policy while you rent the car, hence avoiding the predicament described above.

The next time you plan to rent a car during your vacation, do check the insurance status of the vehicle to avoid untoward disputes that could ruin the fun of your vacation. Happy Holidays!

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