Rental Car Insurance

Purchasing a collision damage waiver or not is at times a complex decision for most users at the rental car shop. The collision damage waiver (CDW) pays for damages to the rented vehicle in case it gets into an accident. Nevertheless, rental car insurance is not a California auto insurance, it is just a rental contract that takes care of damages done to the vehicle.

Prior to paying for this rental car insurance, auto insurance companies will you to abide by this rules to assist you in making an affirmative decision.

- Check your existing auto insurance policy:

Inform your auto insurance company before renting a car. We are sure you will not love to pay additional money for the insurance you have already. Most auto insurance companies will offer liability coverage when someone is injured in a crash.

- Check your credit cards:

There are situations where you will pay for damages with your credit card, when an accident occurs. For eligibility, you possibly will reject the CDW, and also debit your card with the full charge for the rental car. Find out if your credit card provides such services.

- You may have to purchase the collision damage waiver:

You may comfortably reject the collision damage waiver if you know that your insurance or card provides for the liability. However, purchasing the collision damage waiver might be the solution for most rental car users.

The reasons are:

If your own auto insurance or credit card didn’t cover you, then you may have to purchase the collision damage waiver. It makes sense to pay only $8 to $11 per day instead of paying $15,000 to $20,000 for loss of the rental car.

This collision damage waiver covers loss of use. Several California auto insurance companies will not pay for loss of use under your policy. But there are some who pays, such as Alaska, Louisiana, Connecticut, Minnesota, New York, North Dakota, Texas, and Rhode Island.

When accidents happen, certain rental car insurance companies will demand upfront payment, which means that your own auto insurance company will reimburse you later. It becomes an expensive payment for certain travelers.

Rental Car Insurance
By Ali Edenhson