Spring and summer are definitely the most traveled times of the year for most of us, and frequently you find yourself in need of a rental car while you are away from home. Have you ever wondered if your existing car insurance would step in and cover you if you choose to decline the collision coverage the rental car agency is offering you? And what about if I pay for the rental car with a major credit card? Does that provide me some coverage so I don't have to pay for that expensive insurance the rental company is suggesting? If you are like me, you have found it's just not that easy to decline the coverage. The rental car employees have been trained to overcome many of your objections, and then they make you initial the fact that you are signing away all of your rights.
This isn't an easy thought process, and you really should know where you stand before you sign that waiver. By far, the safest answer is a resounding yes! Here are the top five reasons to purchase the collision damage waiver (CDW):
1. Loss valuation. The value of a rental car is determined solely at the discretion of the rental company and may be totally different than the actual cash value that your car insurance policy is based on. The rental car company's agreement may very well contractually obligate you to pay for more than your car insurance will pay, and often those agreements are completely lopsided and unfair. This is the only type of insurance you will ever deal with, that isn't regulated by any regulatory agency!
2. Loss payment. The rental agreement usually requires full payment at the time of a loss, and since your insurance company doesn't ride in your backseat, they can't be there fast enough to inspect the loss, and get you to the airport in time! That won't make for a good family vacation, or a happy wife, and we all need happy families and happy wives.
3. Excessive charges. Rental car companies can charge you whatever they want, and if you can't combat the argument with enough facts and figures to catch that airplane, you might have to put the entire amount on your credit card until such time your insurance can deal with the rental car company, which again can sure put the crunch on available credit cards while traveling.
4. Loss-of-use charges. Since the rental car company charges for the use of that rental car, any loss of use due to damage will be the responsibility of the driver also. These charges can often times be nothing short of ridiculous, but again, they aren't regulated by any governmental agency so you find yourself a little fish in a big pond. Not a comfortable place to for a swim indeed.
5. Excluded uses and drivers. Your personal auto policy may have limitations on use and driver, and if those same uses and those same drivers are not covered under your auto policy, then you are really going to have some issues if you ask your insurance company to get involved in a rental car loss, especially if you are not the sole driver and the named insured on your insurance contract!
The end result is, it is our recommendation that you purchase the rental car companies CDW each and every time you rent a car. It is your best chance to have a safe and successful trip when you find yourself needing a car.
Larry Heuer is president of Heuer Insurance Agency in Sparks. Contact him at 358-5554 or though www.heuerinsurance.com.
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