I'm renting a car in the US this summer. The website mentions Collision Damage Waiver - what exactly is this and is it compulsory, strongly recommended, or another extra that isn't really necessary?
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Collision Damage Waiver
Should you have a accident in the hire car and it's your fault, you're libel for any insurance excesses. Paying a small fee up front prevents you from paying that excess.
In the case of the garage I use when they lend a courtesy car, I pay £3 up front. If I didn't and had a prang, I would have to pay the £100 insurance policy excess.
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DD - your brain must have been multi-tasking when you wrote that. No-one has mentioned Libel, have they?
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No-one has mentioned Libel, have they?
Speel chucker duuf todey. Sorri.
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The last time I rented a car was in Scotland this February.
I had paid for it all beforehand, but when I went to pick it up they informed that my excess for any accidents was £1000! They then mentioned for an extra £12 a day, I could insure myself against this and not pay an excess in case of an accident.
I would assume that it will be the same as a CDW.
Although it is just another way to rip us all off, I took up there offer for peace of mind as you can't be with your hire car 24/7.
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renting a car in the US, through the company's US office is very cheap - but they make up for it with exorbitant insurance costs. Often each type of insurance they offer you will cost as much as the rental, and they offer you a bewildering array.
The two obvious ones are SLI and CDW
SLI: Supplemental Liability Insurance - covers any legal obligation to pay anothers damages
CDW: Crash damage waiver - Covers for damage to the car itself.
Usually in the US, this will still have an excess, which you pay yet more in insurance costs to cover. And then they have seperate windscreen and tire insurance cover.
On top of that, in some states (California for one) they have a mandatory liability cover, not fulfilled by the SLI, which you have to pay. With each of these covers being around $12 a day, it really adds up.
I have just come back from a driving holiday in the States, and following advice on here, plus a lot of research of my own, used a British company which offers annual rental car insurance, which covers all the above at a much lower cost.
The one I used requires you to hold a Natwest Credit Card, and cost £75, but there is another one I know of which anyopne can use and costs £99. If you do a forum search for 'american car hire' you should find all the details.
When I got to the car rental place in LA, the clerk spent a good ten minutes reading through the small print of my insurance document, trying to find a loophole so he could sell me insurance, but eventually had to concede that I was fully covered.
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That's interesting Bazza thanks for feedback on that.
Now I just need someone to report that the European equivelant works.
My normal insurance certificate covers me on a pan European basis to drive "Any motor vehicle of the private car, estate car, utility car or minibus type the property of or on hire or loan or leased to the Policyholder"
The insurance company itself has confirmed in writing that this covers IN FULL rental cars overseas in EU and various other nominated countries. Not just the statutory minimum reqts of those countries either.
But try and get the rental firms to accept it and they will not. Therefore if we can make this work we might change the overall policy conditions and take out a number of these for regular renters.
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FiF
Legally speaking the rental companies can NOT refuse to accept your insurance, but I was warned in the insurance paperwork that some try to weasle out of it. Obviously since yours is standard insurance they're not as geared up for it, but the rental insurance I bought supplied me with a number - if the rental company kicked up a fuss I was to ring this and they would be put straight.
I would recommend ringing your insurance company and telling them of this problem, get a contact number that you can make the rental company ring to confirm the cover.
Here's what was written in my paperwork:
Do I have to accept their (the rental company)insurance?
It is against the law for the rental company to force you to purchase their insurance cover. The assistance company... is on hand to speak with the rental company if this should become an issue. We will report any rental company not following this procedure to the regulators.
Perhaps you should threaten the same.
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I am posting a link to a firm that will give you a years\'s cover for the CDW XS but I regret that they don\'t cover for USA so that doesn\'t help you Johnny. However, for £49 a year in Europe and £59 a year to add South Africa, Aus & NZ and a 31 day limit per trip, or £69 for a 60 day trip, they will cover you for the XS that the hire car companies will want up to £10 a day for. I had a hire car vandalised in Italy last year, plus hit in a car park, and the XS of 500 euros was repaid with no trouble. Only mentioning it in my capacity as a staisfies customer. Originally mentioned in the Telegraph about a year ago. www.insurance4carhire.com
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There is not only CDW but also 'Super CDW', which you need if you want to absolve yourself of all liability.
I too use "insurance4carhire" - for £49 its quite a bargain (haven't needed to claim yet though!).
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Aprila/Bazza Bear,
I believe that the £99 and £75 policy - the latter thro' NatWest are the same policy. 'Insurance4carhire' have this £99 policy for the USA that covers CDW/LDW, SLI & UMP(uninsured motorists protection).
However a health warning! If you are on a 'Fly-Drive' holiday with a so called 'Free Car' it doesn't work as the rental firms depend on the CDW & SLI insurance to make their money and they will not accept the £99 insurance - It says this on the covering letter of my £99 policy.
If the firm selling you the flight/car package will allow it you are better off taking the car without paying insurance in UK and not even bothering with their car. Instead book a car on-line with one of the major rental firms and use the £99 policy for insurance.
If you are going for a couple of weeks in a year there is not a great saving but for any extra weeks in the year it saves you £50-60 a week.
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I should have mentioned that on the £99 policy the maximum length of car rental is 31 days in any one visit. Although you can go as many times in a year as you wish.
Also to answer the original question, although not strictly mandatory it would be madness to drive in America without CDW & SLI. I doubt if any rental company would let you have one of their cars without at least CDW or your credit card details with a limit up to the value of the car.
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Getting a bit confused here! I'm renting for 18 days in Upstate New York btw.
- Looking at the Hertz site, I expect they would be trying to sell LIS ( Liability Insurance Supplement) PAI LDW CDW and PEC (Personal Effects Coverage). I assume a travel insurance policy covers PAI and PEC. Can't find any rates either.
I don't want to pay over the odds for cover that I already have, but don't want be lacking - if you see what I mean.
Also if anyone could explain the following notes:
" On all rentals commencing in the state of New York Hertz provides secondary liability protection. The renters personal/business insurance is used to its limits. In the event of no applicable liability protection, Hertz - by default – becomes primary."
"If renting in Arizona, Maryland, Massachusetts, Michigan, Minnesota, New York, South Carolina, Virginia, or West Virginia:
Upon signing the Rental Agreement, Hertz provides primary liability protection. However, such protection is generally no more than the minimum limits required by individual state law. See Financial Responsibility Limits by State."
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I use this company to insure me annually against any excess claim, tyre damage or broken glass not usually covered by the rentee. £49 for Europe and £79 world wide. 31 day trips and any rental more that 150Km from your home address. Ideal. Regards Peter
/www.Insurance4carhire.com
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Insurance4carhire are indeed the £99 company I was referring to.
If I remember rightly Hertz were one of the few firms who included insurance in the price, but only half the insurance you need, meaning you can't take advantage of a seperate insurer, and you end up paying more. I would personally avoid them.
I used Thrifty, and got two weeks hire of a convertible for about £250. With 'everything insurance' for £75 I think I saved myself a bundle.
The Hertz small print means that in NY they will only cover your liability if you don't have any other insurance which covers it. In the other states they do cover liability, but it's basically the minimum amount of cover they legally have to supply.
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