Doesn’t it seem confusing sometimes just to get yourself a rental car? There appears to be so much paperwork therefore many decisions to make.
For example, should you obtain the collision damage waiver or not? Should you buy additional insurance plan from the automobile rental company?
If you have ever watched people at the rental car counter, you understand these are questions that most people struggle with. Sometimes you can decline additional insurance on car rentals, but there are specific instances that you need to always buy the insurance. But how do you know?
One of the biggest areas of confusion is the Collision Damage Waiver (CDW) provided by the car rental company at the time of rental. It covers damage to the rental car if you are involved in an accident.
The CDW isn’t exactly insurance, and it only covers only damage to the rental car. It generally does not cover property damage or accidental injury. If CDW is purchased, the automobile rental company waives some or most of its to gain from you for physical damages to the automobile.
So should you choose the CDW the car rental agency pushes at you? Experts say that most people don’t require it but purchase it anyway. It is a very costly mistake!
You can save yourself a lot of hassle and unnecessary cost by doing three things. First, check your own car insurance policy to see what coverage carries over to rental cars. Second, see if the charge card you are using offers any coverage for renting. And finally, check the options the car rental agency offers in its policies.
Many car insurance policies include all-inclusive and collision coverage to damages to rental cars. There is absolutely no sense spending money on more if your policy includes this coverage, right? Just verify the details with your insurance professional before you decline the car rental company’s additional insurance options.
Typical car insurance policies provide liability coverage that extends to car rentals. If you injure someone within an accident while driving a rental car, your policy will often cover you. If your car insurance policy does not provide these coverages when you are driving car rentals, be sure to purchase additional insurance from the automobile rental company to safeguard yourself.
In addition, many credit cards offer coverage for rental cars. If your credit card includes coverage for car rentals which have been damaged in an accident, you don’t need to buy any other additional insurance coverage the car rental company gives you.
Finally, read luxury car hire and decide whether or not your car insurance or credit card covers you. Then discuss the automobile rental’s coverage with the agent. Always make an informed decision. Don’t give into pressure by the car rental agent.
Deciding whether or not to cover additional insurance coverage the automobile rental companies offer could be a tough decision. Consult with your credit cards and existing car insurance to see if they provide rental car provisions, and if they don’t, you’d better consider spending the extra money for additional insurance for your own protection.