Car rental companies trust you with thousands of dollars, and in return, they will ask for a few things. One such thing is car rental insurance which you must buy to cover the damages you bring to the car. Car rental companies will never want to go out of pocket for covered damages, and hence they want you to purchase CDW (collision damage waiver). If you don’t buy it, they will go to great lengths to make you cover the damages. This post will reveal car rental insurance truths you should know to stay on the safer side. Keep walking with us!
Car Rental Insurance Truths:
When you buy CDW, the rental company will never hold you accountable for the damages except for a few. No matter how banged-up the car is, you only turn it in and get home without any worries. However, purchasing a CDW is not that simple, as you must explore it and the nasty truths associated with it. Let us begin with the most prominent one!
1. CDW insurance is highly overpriced:
A collision damage waiver can protect you in case of accidents, but do you know that it is ridiculously overpriced? Talking about average rates, it counts for more than 30$ a day and can go higher depending on the locality, car rental company, and vehicle type. Do you know how much of this amount is allocated towards covering damages? Around $3; the rest is theirs to keep.
A car rental insurance or CDW is far more profitable than the rental alone, and the companies will push you to purchase it. You would still be responsible for paying the amount even if you drive the car without a bit of dot on it. But still, customers opt for it for a safer journey. Do you want to add more fun to your ride-out? Contact Lamborghini Hire Dubai companies and rent this exotic car!
2. You pay up-front for all the damage:
The damage responsibility is easily coverable with a debit card or credit card with insurance. Moreover, you can also opt for a third-party insurance policy, but still, you have to pay for the damage up-front. Customers with this setup can recover their amount by filing a claim afterwards.
However, rental companies don’t often say yes to a debit card with a sufficient balance. Even if you can cover your rental with a debit card, you still need to provide credit card details for the financial protection of the rental company. The possible damage claim is filed before you leave the return counter.
3. Damage is more than fixing a dent:
Customers who don’t opt for the collision damage waiver are exposed to various other costs the rental companies charge. Some of these costs are mentioned in the coming lines.
i) Loss of use:
Rental companies consider it a potential loss of revenue if the car is out of service or being fixed. Despite having hundreds of other vehicles available, they will still charge you under this particular heading.
ii) Towing charges:
Rental companies will charge you an extra fee if you find it challenging to drive the car back to its return point or station. You can ask the rental company for help, and they will show up, but not free of cost definitely!
iii) Diminished value:
When you damage a car, it potentially loses its resale value, and the rental company will count on it. When the company disposes of such vehicles, they face potential losses that they will recover from you.
iv) Administrative fees:
What free lunch? Rental companies also charge administrative fees as they have agents to pay and expenses to cover. If they offer you high-end services and consultations, it is not free of cost!
All these cases are associated with non-CDW car rental insurance, and you should watch out for them. However, the damage coverage sometimes depends on collaboration with the rental company.
Alternatives you can take for safety:
Not all customers are willing to pay a higher amount for car rental and want to save money on the transaction. The best way to ensure financial protection is to take one of the following routes.
i) Pay with your existing insurance:
If you have regular auto insurance from a bank or an insurance company, you can cover the collision damage with it. However, this insurance coverage I limited to your local area rental. Consider contacting Lamborghini Hire Dubai companies if you want to rent a Lambo for a weekend ride-out!
ii) Use credit card benefits:
Most credit cards provide free car damage coverage, and you should capitalize on this opportunity. However, you need to rent your car with that specific card.
Ride your dream car with your loved ones!
Driving your dream car has always been on your to-do list, but now is the time to do it! Car rental companies provide you with exotic car models to add more thrill to your ride. Consider contacting them today!
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