Collision Damage Wavier on Rental Cars
If you think auto insurance for your own vehicle can get complicated... renting a car opens a whole new can of insurance questions.
Depending on your personal situation, rental car insurance could be covered by:
- Your credit card company
- Your motor club (e.g. CAA)
- Your personal auto insurance policy
- Your business insurance
None of the above - making a “collision damage waiver” (CDW) from the rental company an attractive option
Even if your personal line of auto insurance does cover rental cars, your deductible might be so large that you decide to go with the CDW. Depending on the deductible you choose with the CDW and the type of car you rent, the waiver generally costs $25 to $30 a day.
There are limitations about the rental company’s coverage that should be noted:
The CDW does not cover personal injuries or damages to personal property, only damage to the rented vehicle
Some CDWs will revoke coverage under circumstances such as if you drive on unpaved roads, out of province, in a negligent manner, under the influence of alcohol, or you let a non-authorized person drive the rental car
Before you get to the car rental counter...
Check to see what kind of rental car coverage your credit card company and/or motor club offers
Check with your local insurance broker to see if rental is included in your personal line of auto insurance, and if so, what the deductible is
If you need to buy CDW, look into purchasing it beforehand on the Internet rather than at the rental counter, as it may be cheaper
When you get to the rental counter...
- Show proof of valid collision insurance on your auto policy, or show proof of your purchase of CDW
- When the rental staff does the car walkabout and takes notes of any dents/scratches, you take notes, too
- Take photos with your cellphone or other camera of all sides of the car, zooming in on any spots already damaged
- Do the same again (note-taking and photos) when you bring the rental car back, to avoid disputes over damage
Let Gougeon Insurance review your options before you go on that trip where you need to rent a car... that is, not how to fight damage claims, but how to make sure any rental collision doesn’t cost you a fortune.