An Independent Review of Rental Car Insurance 3
Collision Damage Waiver (CDW): Some car rental companies also call Loss Damage Waiver (LDW). It is generally known as insurance, but this is incorrect. It is really a warning. When you purchase this protection, the car rental company disclaims liability for damage or theft of the rental vehicle. If something happened to the car, it would simply submit a quick claim form when the car was returned and the car rental company would pay to repair or replace it. The price of this protection usually ranges from $15 to $25, depending on where you are renting. Caution: This coverage may be void if you cause an accident and violate the law. This includes accelerating, off-road driving or drunk driving, so be careful when driving a rental car or any other car.
If you have a lower limit, such as $10,000 for material damage liability coverage, consider purchasing collision damage exemption, as this low limit may not be sufficient to pay for the rental or repair of the rental car. Remember that you may also be liable for damage to other people’s cars or property if you are involved in an accident and are determined to be guilty, and car rental companies will charge you for the loss of rental income for the car that spoiled. These are all important factors that must be taken into consideration when deciding to purchase collision damage waiver so click here to get car insurance quotes.
Another advantage of this coverage is that there is no deduction. This can be helpful if you have been involved in an accident covered by the car insurance policy and are renting a replacement car while the car is in the shop being repaired. You will see in this scenario that any damage to the rental car would be covered by its comprehensive coverage or collision, meaning that you would have to pay the deductible.
Excessive Liability: The law requires car rental companies to provide a minimum amount of liability protection for renters of their vehicles, but this is rarely enough to protect their interests if they seriously injure someone in an accident. The liability portion of your personal car insurance policy will be transferred to your rental car so that you have adequate limits for personal injury and property damage liability in your personal car insurance policy. We do not recommend purchasing this coverage. This coverage will only be paid after the limits of your personal auto insurance policy are exhausted. The price of this protection is about $ 10 to $ 13 a day, for an excess of $ 1 million protection.