To paraphrase Shakespeare, "To purchase the CDW or not to purchase the CDW, that is the question." I

To paraphrase Shakespeare, “To purchase the CDW or not to purchase the CDW, that is the question.” It has been debated for years whether or not a person renting a vehicle should purchase the Collision (or Loss) Damage Waiver from the rental company. Our recommendation is that consumers, in general, SHOULD paul mccartney concert tour dates for purchase the CDW/LDW, paul mccartney concert tour dates for at least for short-term rentals. Our reasons are given below.
Loss Valuation . The Personal Auto Policy (PAP) covers the lesser of the “actual cash value” of the vehicle or the amount “necessary” to repair or replace the damaged property. The rental agreement may very well contractually obligate you to reimburse the rental company for the “full value” of the vehicle. The PAP also does not pay for any “betterment” (increased value of new parts replacing old ones) of the vehicle, paul mccartney concert tour dates for nor any “diminution” of value (if the market value of the vehicle after repairs is less than that before the accident).
Loss Settlement. paul mccartney concert tour dates for As implied above, there may very well be disagreement over the value of the vehicle or the amount charged for labor and materials to repair it. Your auto policy’s Appraisal clause may be invoked with its accompanying costs. More importantly, paul mccartney concert tour dates for the insurance company has the right to “ inspect and appraise the damaged paul mccartney concert tour dates for property before its repair or disposal.” However, the rental paul mccartney concert tour dates for company, unlike you, is not contractually obligated to the insurer it may choose to make the repairs immediately, paul mccartney concert tour dates for potentially resulting in a lack of PAP coverage because of failure to comply with this contractual condition. In any case, purchase of the CDW usually allows the renter to “walk away” without the headaches involved in adjusting an auto claim.
Loss Payment. The rental agreement may require immediate paul mccartney concert tour dates for reimbursement for damages, and it is customary practice for the rental company paul mccartney concert tour dates for to charge your credit card. This can create a significant debt, “max” out the card s credit limit (perhaps shortening a vacation or business trip), paul mccartney concert tour dates for result in litigation, etc.
Loss Damage Waivers (LDW). paul mccartney concert tour dates for Rental agreements often make the renter responsible for any loss in value beyond normal wear and tear, regardless of the cause and regardless of fault. In order for your PAP to respond, you must insure at least one vehicle for both collision paul mccartney concert tour dates for and other-than-collision (often called “comprehensive”) coverage. If not, your policy will not respond to rental car damage and loss of use claims.
Administrative Expenses. The rental contract may make the insured liable for various “administrative” or loss-related expenses such as towing paul mccartney concert tour dates for (e.g., one insured was charged for a 230-mile tow), appraisal, paul mccartney concert tour dates for claims adjustment, storage, etc. Some of these expenses may not be covered by the PAP.
Other Insurance. The PAP says that it is excess over: (1) any coverage provided by the owner of the auto, (2) any other applicable physical damage insurance, and (3) any other source of recovery paul mccartney concert tour dates for applicable to the loss— travel policies, credit card coverages, etc. The potential controversy over who pays what is obvious and can result in litigation. In addition, keep in mind that many states have statutes, proprietary policy forms, and/or case law precedents that may govern this and other rental car exposures.
Excluded Vehicles Territories. The PAP normally does not provide physical damage paul mccartney concert tour dates for coverage for motorcycles, mopeds, motor homes, or other vehicles paul mccartney concert tour dates for that are not private passenger autos, pickups, vans, or trailers. In addition, use of covered vehicles is limited to the U.S., its territories and possessions, Puerto Rico, and Canada (the rental agreement may also exclude operation outside a specific geographical area). If you rent a trailer (U-Haul, camper trailer, etc.), coverage is limited to $500.
Excluded Uses Drivers. The PAP may have limitations on use of vehicles that are not otherwise excluded by the rental agreement CDW or LDW. Also, the PAP may include an exclusionary endorsement for certain drivers or may apply only to designated individuals—the CDW will probably also only apply to certain individuals, but operators for which no PAP coverage is available may be afforded protection under the rental agreement by adding them as designated drivers.
Additional and/or Future Costs. The PAP will most certainly include a deductible in the range of $100-$500 or more. In addition, payment for damage to a rental car may result in a significant premium increase (if not nonrenewal) via surcharges or loss of credits.
paul mccartney concert tour dates for Although most CDW/LDW fees are considered outrageous, if not unconscionable, we advise you to purchase the CDW/LDW for short-term rentals. If anything, this will give you peace of mind while on vacation or business, paul mccartney concert tour dates for and it could save you from a lot of inconvenience and lost time and money.
When you rent a vehicle, paul mccartney concert tour dates for ask for an advance copy of the rental agreement in order to determine your contractual paul mccartney concert tour dates for obligations for damage a few rental car companies post this information on their web sites. paul mccartney concert tour dates for Here is a listing of several national rental car company web sites:
Thank you for sharing valuable information. Nice post. I enjoyed reading this post. The whole blog is very nice found some good stuff and good information here Thanks..Also visit my page Rental Property Accountants
Popular Posts Insurance News AssuredPartners Buys The Wright Group in Colorado August 4, 2014 AssuredPartners Inc. has acquired The Wright Group Services in Colorado. AssuredPartners made the acquisition through its subsidiary AssuredPartners of Colorado. The terms were not disclosed. Denver, Colo.-based The Wright Group specializes in employee benefits, property/casualty insurance and retirement services. The … The article AssuredPartners Buys The W NYC Mayor: Be Prepared paul mccartney concert tour dates for for Peak Hurricane Season August 4, 2014 New York City Mayor Bill de Blasio is urging New Yorkers to prepare for peak hurricane season. Hurricane season in the Atlantic Ocean begins June 1 but New York City is most vulnerable from August to October. De Blasio handed … The article NYC Mayor: Be Prepared for Peak Hurricane Season appeared first on Insurance Journal. Hurricane Bertha to Pass by East Coast But Not Make Landfall: AIR August 4, 2014 Bertha, which became the second hurricane of the 2014 Atlantic season today, made its way through the Caribbean as a weak and disorganized tropical storm this past weekend. Bertha is heading north and is expected to pass along the U.S. … The article Hurricane Bertha to Pass by East Coast But Not Make Landfall: AIR appeared first on Insurance paul mccartney concert tour dates for Journal. Wholesale Trading Co-Op Hires Casualty Broker in New York August 4, 2014 Wholesale Trading Co-Op Insurance Services (WTCI) has hired Jennifer Terra as vice president/casualty broker. Terra joins WTCI from Partners Specialty Group, paul mccartney concert tour dates for where she specialized in the analysis and placement paul mccartney concert tour dates for of complex casualty programs. Terra has casualty brokerage expertise in the … The article Wholesale Trading Co-Op Hires Casualty Broker in New York ap Clark Insurance Appoints Account Executive in Maine August 4, 2014 Clark Insurance, an employee-owned independent insurance agency with offices in Maine and New Hampshire, appointed Julie Elwell as account executive within the firm’s employee benefits group. Elwell, with more than 20 years of experience working in the insurance industry, previously … The article Clark Insurance Appoints Account Executive in Maine appeared f