To Buy or Not To Buy: Rental Collision Damage Waiver
If you are thinking about renting an automobile on your next vacation, don’t miss out on coverage that could benefit you in the event of a loss.
The standard automobile policy extends physical damage coverage to a rented vehicle only if one of the vehicles on your policy has comprehensive and collision coverage. However, the standard automobile policy will not pay for “Loss of Use” or administrative fees charged by rental car companies on vehicles damaged by an insured. “Loss of Use” is defined as the dollar amount lost to the rental car companies due to the inability to rent a vehicle while it is being repaired.
Collision Damage Waiver, or CDW, is an optional feature offered by car rental companies. This coverage not only pays for the collision damage in a covered loss, but also covers the “Loss of Use” and administrative fees incurred by the rental company. Purchasing CDW releases you, the renter, in most situations from the financial responsibility on the rental car. The cost to purchase CDW varies by rental company, but usually costs at least $20 a day. However, some major credit cards offer CDW as one of their benefits to cardholders. We would recommend that you call them to determine if they offer the coverage and what, if any, limitations and/or requirements they have.
Remember to always read the fine print and do not hesitate to call us with any questions. We are here to serve you!
Article from The VML Voice: First Quarter Newsletter
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