Rental Car Insurance Advice – Wavering About Waivers?

Rental Car Insurance’s Loss Damage Waiver

Before you decide to reject Loss Damage insurance coverage offered by a car rental company, make sure you know whether your own car insurance company fully covers damage to or loss of the rental car; the limits of their coverage and your deductible. If you decline the car insurance offered through the car rental agency and are in a car 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.

Credit Card Car Rental Collision Damage Waiver (CDW)

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 it.However, there is a bright side for this potential problem. Many credit card companies offer car 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 cars. Of course, it only comes into play if you had no car insurance 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 car and towing charges.

Peter J. Hart

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