What is PAI?

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What is PAI and What is Its Coverage?

Personal Accident Insurance (PAI) protects drivers of a rented car and their passengers in case of an accident. The insurance covers accidental death, accidental medical costs, and emergency care.

PAI is capped at certain amounts which are set by the insurance company and the rental locations.

PAI’s cost around $5-$10 per day in the USA. However, you might be asking if this rental car insurance necessary? Let’s get to it.

When Should You Consider PAI Insurance for A Car Rental?

It is good if you have any of the insurances below. However, do make sure you are aware of their cover and possible duplicates with PAI.

  • Life insurance – In case you are paying for life insurance, you are also covered in case of death during traveling.
  • Credit card insurance – If you are paying for your car rental with your card, you might already have AD&D (Accidental Death and Dismemberment) coverage.
  • Health insurance – Your personal health insurance will most probably offer car rental accident coverage as well.

If you don’t and you do not want to rely on third-party insurance from another driver, you should consider purchasing PAI.

Moreover, USA citizens renting a car abroad may not be covered outside of the US.

If you covered with insurance, but you do not want to affect your personal premium. Paying for personal accident insurance will do the trick as it comes prior to your personal insurance.

What Other Insurances are Offered with Car Rentals?

Apart from the personal accident insurance car rental, there are other main types of insurance offered when renting a car. The most important ones that you should consider are CDW & Theft Protection (in other cases together they are referred to as LDW), SLI, and PPI/PEP. Let’s talk about them in a little bit more detail.

  • CDW stands for Collision Damage Waiver. This type of insurance removes any liability in case of any damage to the rental car. However, it usually does not include damage to windscreens, tires, and undercarriage.
  • LDW stands for Loss Damage Waiver. You will be protected from liability in case your car is stolen or vandalized, on top of CDW.

PS: CDW/TP/LDW is subject to excess. It is a minimum charge when accidents happen to the rental car. Upgrading the insurance can lead to zero excess.

  • SLI stands for Supplemental Liability Insurance or Third-Party Insurance. SLI is vital if you get involved in an accident and a third party gets injured.
  • PPI/PEP is short for Personal Property Insurance or Personal Effects Protection. This covers any valuables with you that might get stolen or damaged in case of an accident. It will cover your belongings to a certain limit.

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