If you are an infrequent car renter, signing the rental car agreement can be a confusing experience. The agent will strongly suggest that you should add CDW insurance to your bill. But what is CDW?
There’s a glimmer of doubt in your mind. After all, adding the CDW is going to make the rental car significantly more expensive. Can you salvage that great deal you got on your rental car? Suddenly, you’re not sure. Do you need collision protection? And what is CDW exactly?
Car Rental Definition of CDW
Basically, the Collision Damage Waiver (sometimes called a Loss Damage Waiver) covers any damages to the rental car. It’s a confusing term because the waiver is not for you, the driver. The waiver is for the car rental company.
When you sign the waiver, the car rental company waives the right to hold you responsible. When you decline the waiver, you are giving the rental company the right to hold you responsible.
What Does the CDW Cover?
The CDW covers the cost of making necessary repairs. For example, it pays to fix a dent or scratch or even if the vehicle is totaled.
In some cases, the CDW or LDW also covers associated costs, such as the rental company’s loss of use while the car gets repaired, its diminished value after an accident, towing charges, and various other fees that could otherwise be charged back to you.
Certainly, buying the CDW buys peace of mind, but it can also add up: the cost of a CDW or LDW typically runs from $20-$30 a day for a rental. Several states—such as California and New York—limit the cost of a CDW, but in most of the country, you can expect to pay double-digit dollars every day you rent the car.
Note, however, that a new law in California regarding rental car CDW went into effect in January 2022. Rental car companies are now able to charge up to $25 per day for over-the-counter collision insurance. (Previously, collision insurance for economy and compact cars were capped at $11 per day, while intermediate, standard, and full-size were capped at $17).
How to Know If You’re Already Covered
The good news: Most drivers don’t need to buy the CDW—but some people may still want it anyway. The chances are that you’re already covered through your auto insurance, your credit card or both.
Does your auto insurance cover car rentals?
If you own a car, then your own insurance—if you have a comprehensive coverage plan—gives you those same benefits as a CDW with a rental car. (Several states, including Minnesota, Louisiana and Massachusetts, even require automobile insurers to cover rental cars in all their policies.)
But, there’s a hitch. You’re only covered within the limits of your policy for your own vehicle. So if you drive a luxury car back home, and are opting for a modest budget car on your trip, you’re in pretty good shape for coverage. But if your everyday car is an aging compact and you’ve decided to treat yourself to a sporty convertible, you might be putting yourself in a bind.
To be sure about where you stand, call your insurance provider before your trip and ask a few questions. Do you have collision and comprehensive coverage on your policy, and does it to extend to a rental? Are there any limits on cars you’d be covered for? Are you covered for Loss Of Use and Diminution of Value, are there any risks if you need to file a claim for damage related to a rental?
In most cases, if your own policy covers a rental, you would just need to pick up the cost of the deductible in case of an accident. Even if you have coverage, some folks don’t want to use it—say, if your own coverage has a big deductible, or if you’ve already made a claim in the past year and don’t want to risk another incident that would hike up your premiums.
Does your credit card provide a car rental insurance benefit?
And what if you don’t own a car? You still may be covered through your credit card if car rental insurance is a cardholder benefit—but know that some credit cards have recently removed this benefit, so always check before embarking on a trip.
If you have more than one credit card, it’s important to know how to choose the right card to pay for your car rental.
Again, you can call your credit card company or look it up online if you’re unsure. Before your trip, it’s important to find out whether your card offers primary coverage (which supersedes coverage from your auto insurance policy) or secondary coverage (which only kicks in once your auto insurance deductible is paid and coverage limits are hit).
Frequently Asked Questions
Can I rent car in the US from another country?
You can’t rent an American vehicle if your are not a citizen of the United States. This may include a visa waiver program for certain countries. Additionally, you will need to have valid documentation like a passport and proof that you are insured. Additional information about this topic can be found at the DHS Website.
Which rental car agency has the largest number of locations?
Hertz would have been an answer, but they aren’t listed as a service provider that is location-based.
Do you need a car in Europe?
The best solution will depend on where you live and the things you love to do. A typical European city may have priorities that are different from one in a rural area.
Consider how long you intend to stay in each place. If you’re planning to move around frequently, then an economical car may not suit you as well as if you are going to settle in one place for a while.
In most cases, buying secondhand cars is cheaper than renting. There are many reasons why buying a used car in Europe is cheaper than renting one. You can save money on fuel costs, parking fees, maintenance, insurance, taxes, and so forth.
You can also drive the car safely knowing that you own it.
You can find excellent information on car rental in Europe on a variety of websites. Check out our recommendations.
Do I need separate car coverage to drive in Europe?
If your current insurance doesn’t provide cover, consider buying additional coverage for foreign drivers.
This is because it is possible for different rules to govern who is liable in case of an accident between two vehicles from different countries.
If you are considering taking out additional cover, be sure to carefully read the small print.
Also, verify if your existing policy covers international travel. This is usually called ‘extended warranty, and you might find it cheaper to buy it separately.
Can you rent a car in Europe with a US license?
It depends on which country you are visiting. If you are going to France, for example, you can rent cars there but not if you want to go to Italy because they don’t accept US driver’s licenses.
What is the daily cost of a car rental in Europe?
It is unknown, but we believe it to be between $100 and $200 per day.
We recommend renting for at least 2 days, as there are so many activities and sights to see.
Consider buying a vehicle with a price range of $2000-$3000 for those who plan to stay longer.
This will allow you to travel freely around Europe.
Check with your credit card company to see if they offer any rental discounts.
Chase Sapphire provides car rental insurance for Ireland.
Yes, your vehicle can be insured for an additional EUR15 daily. You have access to a range of optional additionals including breakdown assistance, theft and personal accident.
Statistics
- I’d say 70% of the time, we have a hassle-free encounter, but there have been certain companies that we prefer not to use anymore. (theworldpursuit.com)
- In 2019, the most crucial factor is the cost and fees of the rental (accounting for 28% of overall satisfaction with the rental experience), followed by the rental car itself at 25% and the pick-up process at 23%. (cnet.com)
- You can rent an automatic but these cars can cost as much as 50% more than a manual vehicle. (earthtrekkers.com)
- Save up to 30% on your rental car in Europe when you book with us today. (autoeurope.com)
- If you’re a member of AAA, you might also be able to snag discounts of 10 percent at Thrifty, and 8 percent at Dollar. (afar.com)
External Links
enterprise.com
autoslash.com
jdpower.com
kayak.com
How To
How to report a rental vehicle accident
It’s possible that something could happen when you drive a rented vehicle. You can get in an auto accident, your luggage may be stolen, or someone could be hurt. To avoid any financial loss, you will need to file a claim against your insurance company.
If you are involved in an accident involving a vehicle, you must report it immediately to the police. The police will then be able to document the details of the accident and notify you about their investigation results. They will either issue you tickets or take note of the incident at-the-scene. They will then file a claim against you driver’s licence.
After getting in an accident, dial 911 immediately. A dispatcher can ask questions about the situation and see if any people were hurt. After answering basic questions, a dispatcher will let you know where to go or who to call next. The first thing you should do in dealing with an accident is exchange information with the other side. Most likely, the other person will give you their name and telephone number. Next, ensure everyone is well. You will try to assist anyone who is disabled or injured.
If no one was hurt, you’ll want to document everything. Notate the time, place and weather conditions. The type of collision. Names of all involved. Injuries sustained. You will need to seek medical attention if someone is injured. You will also need to keep track and record your damages, which may include damage to your car or the vehicle of the other party.
Then, follow up with your insurance. You will first need to fill out an online claim form. Most insurance providers will offer to pay the amount of the deductible before paying the rest. After the claim has been paid, both you and the other driver will need to sign a release agreement. Finally, you’ll receive a check from the insurer.
Now that you’ve filed a claim, you’ll want to stay within the guidelines set by your insurer. If your policy covers renting a car or allowing you to drive it yourself, these are the rules.
