Disposal of damage or, as it is often called, waiver of collision damage ( CDW ) or loss loss ( LDW ), is an optional damage insurance available to you when you rent a car.
Car rental companies treat CDW as a waiver of their right to make tenants pay damages on cars.
In many countries, it is a legal requirement to have CDW insurance included in the basic car rental rate. This includes a rental car. Some rental companies also offer liability insurance and coverage of towing fees. Terms and prices vary. Alternatives to CDW include other car insurance policies, some coverage from credit card issuers (Visa, MasterCard, etc.) and some travel insurance.
Video Damage waiver
Risk is resolved
Liability
If a car damages property or injures a person, the customer or other insurer must pay compensation (that is, "responsible"). US car rental companies sometimes include the minimum liability insurance required by law in basic lease fees. Hertz includes it in all countries except California, but will incur any damage to the driver (meaning the car is insured to the minimum state but the driver will pay for all damages paid by Hertz). Avis includes it in all countries except California and Texas, at least for renters who do not have their own coverage. Other companies do not publish where they include liability insurance in the cost of a basic lease. Some car rental companies offer insurance coverage at an additional cost.
In Canada, all car rentals are required by law to include a minimum of $ 200,000 in third party liability insurance, regardless of whether the tenant has own car insurance or not. Therefore, most rental agencies do not provide third-party liability insurance options, and only take into account the premiums as part of the fixed rental fee.
Collision, theft, other damage
When a customer does not pay a car rental company to free the damages, and a rental car is stolen, or damaged by accident, vandalism, weather (hail) etc. Customers or other insurers must pay to the rental company a full cost repair, plus administrative and , in some states, lost use. From some companies, in some states and countries, there is a cost to withdraw, store, confiscate, administrative costs and reduced car (Avis, Budget, National, Thrifty). Some companies even say that they themselves will decide the reduction (Dollar, Hertz ").
The waiver of a rental company's damage usually includes accidental damage and withdrawal of damaged vehicle, as long as the tenant complies with the lease contract (such as authorized driver, location, no race) and with a waiver of damage (such as a police report). A waiver may also include theft, vandalism, loss of use, and liability. Tenants often have a choice among different scopes for different costs.
Exclusion of damage does not have to be complete. They may have a deductible (also called an excess) and limit the amount covered. The scope of obligations always has a limit.
The above description is from the rental company's website, under titles such as Policy, FAQ, Coverage, or Others.
Damage Exclusions may be purchased from car rental companies in most countries, or through rental car insurance companies in the UK, or through travel insurance companies. Coverage of a car rental company may be required if the lessee has no proof of coverage elsewhere.
Maps Damage waiver
Insurance or not?
CDW meets the basic definition of insurance, as it transfers some of the risks from the car tenant to the rental company. But the leasing company does not call it insurance, because it is a waiver between the tenants and the company that the company waives their right to charge the tenant for legitimate damage to the vehicle. The leasing company does not have a license or is set up as an insurance company. Also no claims are made. Leasing companies treat CDW as a waiver of their right to make tenants pay damages on cars.
Credit card coverage from release of damage
Cards issued in the US
Some credit card issuers (Visa, MasterCard, etc.) Offer insurance for theft or damage to rental cars. Some cards (listed in the table below) offer "premier" insurance, so drivers do not have to file claims with their personal insurance. More cards offer "secondary insurance." This means that if the lessee has personal or business vehicle insurance with the right coverage, then the insurance will pay first. Then the credit card issuer will pay the major insurance deductibles and will handle the big claims above the major insurance limits.
If the lessee has no other vehicle insurance for a specific claim (no insurance at all, or no in the country, or no collision insurance, etc.), the credit card company (if offered) will pay the entire amount, to the limit.
The four credit card companies listed below include collision damage with some of their cards. Visas and some MasterCards and American Express cards also include theft , while other MasterCards and American Express cards include theft, vandalism, hitting deer or cutting windows (the source at the bottom of the table).
Another important issue for some tenants is that Visa and MasterCard only cover a lease contract of 15 days or less (even for the first 15 days of longer rentals). Some American Express and MasterCards are useless on ground or gravel ground, as they exclude "damage to any surface, other than a bound surface such as concrete or asphalt".
MasterCards and Visas in the United States say they include "Physical damage and/or theft," but introductory paragraphs for some MasterCards and all Visa cards limit this to "collision or theft," so vandalism and hail are excluded. It might be ambiguous whether the impact of deer and glass chips is covered as "collisions." MasterCards from Bank of America and MBNA generally have a simpler opening paragraph, which provides protection for any physical damage.
Even among these brands, some cards do not have full coverage, especially debit cards and cards with low credit limits. The AmEx Platinum Cash Rebate card, for example, has no coverage. The "Standard" MasterCard card has no reach, while the "Premier", "Gold" and "Platinum" cards vary in scope. Credit Card CitiÃ,®/AAdvantageÃ,®, Citi ThankYouÃ,®, CitiÃ,® Dividen or Citi CashReturnsÃ,® MasterCard is famous for providing coverage worldwide without geographical exceptions, while most MasterCard, Visa and American cards Other expresses are not included in Ireland, Israel, Jamaica.
This scheme applies to cards issued in the US, Trinidad and Tobago, and does not seem to exist anywhere else. In addition, no credit card will bear the rental fee charged to a third party, such as if the insurance company is billed directly for the lease.
The following table is an attempt at summary, although it is not guaranteed. Coverage is complex and changes periodically. Phone staff did not know the changes. A formal insurance policy is set up and is not readily available to cardholders, who are only given a summary, such as the links below.
"Lost usage" and administration fees are often advertised as being covered by credit cards. However, credit card companies only pay for these items if the car rental company provides evidence. If a car rental company does not provide evidence, there seems to be no reason for the tenant to pay.
See also
- Vehicle insurance
References
Source of the article : Wikipedia
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