Car Rental Insurance Advice
Before you decide to reject Loss Damage insurance coverage offered by a car rental company, make sure you know whether your own automobile insurance company fully covers damage to or loss of the rental car; the limits of their coverage and your deductible. If you decline the insurance offered through the car rental agency and are in an accident you may, under certain circumstances, be liable for the fair market value (less salvage value) of the car if it is totaled. You could also be liable to pay for the lost revenue of the car rental agency during the time the damaged rental is being repaired. Your own insurance company could have exclusions for the loss of their rental income while the vehicle is being repaired.
Collision Damage Waiver (CDW) for Auto Rentals on Your Credit Card
However, there is a bright side for this potential problem. Many credit card companies offer auto rental collision damage waivers (CDW) if you rent a car with their credit card. This benefit provides you reimbursement for damages to collision or theft up to the actual cash value of most rental vehicles. Of course, it only comes into play if you had no automobile coverage for your own vehicle or there is an exclusion in your policy. This oftentimes is a great benefit because many credit cards also pay for “loss-of-use” charges imposed by the rental car company while the vehicle is being repaired. These credit cards also can possibly cover the cost of replacement rental vehicle, the theft of your rental vehicle and towing charges.
So, pull out your credit card benefits guide or contact your credit card company to find out what benefits are offered. It may very well be worth.
Peter J. Hart
The article is for informational purposes only and not for the purpose of providing legal advice. You should contact an attorney to obtain advice with respect to any particular issue or problem.