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Should I buy the rental car agency’s “insurance?”

By March 13, 2023March 22nd, 2023No Comments

Here’s just 3 of the Top 10 Reasons we have to buy the rental car company’s additional policy:

  1. Loss Valuation – The value of a rental car, according to virtually all rental agreements, is determined solely at the discretion of the rental company and may be significantly different from the market value or actual cash value “ACV” basis used by most personal automobile insurance policies.
  2. Indirect Losses – The consumer most likely will be responsible for the rental company’s loss of rental income on the damaged unit. In one case, a renter was hit with a $2,000 “loss of use” charge, since the company could not rent out the vehicle for months due to labor & parts shortages, etc…
  3. Excluded Uses & Drivers – Sometimes you need someone else to drive, and your underlying personal automobile insurance may not extend your insurance to that “driver,” regardless of the reason. Also, in some cases the use of a seemingly off-road vehicle off-road that suffers damage, may not be covered in its entirety; towing expenses limited or excluded as well.

Although most collision damage waiver (CDW) or loss damage waiver (LDW) fees are considered outrageous, most consumers should consider purchasing the CDW/LDW for short-term rentals. This is becoming increasingly the case as rental car companies charge ever-higher fees and penalties for losses and expenses not covered by most auto policies.

Despite what you might be led to believe by some “low-cost” auto insurance advertising, coverage and claims practices for the use of non-owned autos like rental cars can vary dramatically from one insurer to another. Equally as deceiving, virtually all rental car companies draft their own rental agreements (waivers) and can make charges and assessments that are amazingly not covered by any auto policy.