Rental Vehicle Insurance Excess

[Mal]

I hope people don't get confused (as I may be) and think some of the insurance policies for rental vehicles mentioned in this thread cover damage to rental vehicle because my reading of the conditions is it only covers the "excess".

Agree.

Reading my "QBE Travel Insurance" backed policy, it also covers similar.

It says "This cover is not in place of rental vehicle insurance and only provides cover for the excess component up to the applicable limit." (The limit is $4000).

They also have the standard disclaimer that you are not covered if "You operate a rental vehicle in violation of the rental agreement."

 

[markis10]

Avis and Hertz include LDW/CDW in pretty much all the rates without the option to waive, so in reality the insurance covers any possible liability inless you are drink driving or on unsealed roads etc. Given that the excess waiver is $20 a day in most cases it does not take long to get you rmoney back on a yearly frequent flyer policy and for the $400 I like the piece of mind!


Overseas it might be a different story however mostly I rent in Australia, would not dream of driving in Asia.

 

[JohnK]

I hope people don't get confused (as I may be) and think some of the insurance policies for rental vehicles mentioned in this thread cover damage to rental vehicle because my reading of the conditions is it only covers the "excess".

The wording in the Product Disclosure Statement at http://www.onlinetravelinsurance.com.au/travel-insurance-benefits/index.htm states "This cover does not take the place of rental vehicle insurance and only provides cover for the excess component up to the applicable section limit."

So, correct me if I'm wrong but my understanding is (if you do want that cover) is to still pay the 'collision damage waiver' and/or 'extended protection' premium and then if something does occur your $3K?? excess is only covered.

Maybe we are talking about the same thing but I am totally confused.

When you hire a car that car has rental vehicle insurance but the excess is very high e.g $2,750 or $3,000. You have the option to reduce this excess down to around $450 by paying between $20-$35 per day to car rental company.

So if you don't violate your rental agreement (under the influence, negligent driving etc) and you have an accident the rental vehicle insurance covers the damage but you pay the excess, whatever that is. So theoretically damage can be $10,000 you only pay the excess, same as your own comprehensive motor vehicle insurance.

Now I can choose to waive the high cost charged by car rental companies to reduce excess and take out additional insurance to cover the rental insurance excess. Some policies are for $3,000 others for $4,000 etc. With online travel insurance it is $3,000 and you can also purchase an additional $2,000 in lots of of $500 at $25 for each $500.

Now by paying this premium to cover the excess I am covered for the conditions mentioned previously, ie. if rental car is stolen, crashed, damaged or I can't drive because I am sick. Assume rental car is stolen, so car rental company asks me for $2,750 excess (I did not pay daily excess reduction) and I pay them and then I put in a claim to the travel insurance to cover the excess money I just paid the car rental company.

The person I spoke to on the phone explained all in detail and told me that I do not need to take out the daily excess waiver offered by car rental companies in order to by covered by this policy for excess. In fact this is the whole idea of this policy.

 

[Dave Noble]

It says "This cover is not in place of rental vehicle insurance and only provides cover for the excess component up to the applicable limit." (The limit is $4000).

Do be aware, if renting in many countries, there is no mandatory excess reduction as provided in Australia; in many countries, if you do not take out the CDW then you are liable for the full value of the car and $4000 limit could leave you one huge shortfall

Dave

 

[drron]

[]

Not the QBE one which is why I mentioned it by name, being specific in detail rather than general in nature, its a frequent traveller policy for worldwide use with a nice touch being domestic use is also covered.[/quote]
I use the annual policy from travel insurance direct.I talked to all major underwriters.My problem is that my rental car use is in the USA.The problem is as Dave Noble says.The excess benefit is not much comfort if you have not taken out CDW.
Also no one covers 3rd party insurance.There is a general disclaimer in all australian policies that such insurance is not payable if in a mechanically propelled vehicle even as a passenger.So have an accident in your rental car in the states with only your annual travel policy plus credit card cover and you will be seriously out of pocket.

 

[JohnK]

Overseas it might be a different story however mostly I rent in Australia, would not dream of driving in Asia.

Smart choice! I panic just sitting in the back seat of a taxi or limousine in Asia. :shock:

 

[Kiwi Flyer]

Overseas it might be a different story however mostly I rent in Australia, would not dream of driving in Asia.

Smart choice! I panic just sitting in the back seat of a taxi or limousine in Asia. :shock:

Doesnt that depend on who'se in the back with you and what they're doing? :wink:

 

[JohnK]

Overseas it might be a different story however mostly I rent in Australia, would not dream of driving in Asia.

Smart choice! I panic just sitting in the back seat of a taxi or limousine in Asia. :shock:

Doesnt that depend on who'se in the back with you and what they're doing? :wink:

I wish. :roll:

 

[markis10]

Overseas it might be a different story however mostly I rent in Australia, would not dream of driving in Asia.

Smart choice! I panic just sitting in the back seat of a taxi or limousine in Asia. :shock:

I find it unerving being in a taxi in Taipei that overtakes a ambulance with lights and siren on, and it happens every trip I have done in the last 8 years!

 

[NM]

I find it unerving being in a taxi in Taipei that overtakes a ambulance with lights and siren on, and it happens every trip I have done in the last 8 years!

Wow, where do you pick up a taxi that has lights and a siren? Could really do with them some days.

 

[markis10]

As far as US goes, LDW is included in the rates at most locations for most of the majors (and in most corporate agreements ) or there is LLDW which would invoke coverage by the "excess" coverage on insurance, they have quite a few options however I suspect travel insurance already covers these without digging deeper. From the Hertz site:

A Summary of Hertz Optional Services*

Hertz Loss Damage Waiver (LDW)
When you purchase Hertz' LDW, which is not insurance, you will not be held responsible for damage to the Hertz car in the event that any damage should occur, provided the loss or damage was not the result of any prohibited use of the car.

Hertz Partial Damage Waiver (PDW)
Partial Damage Waiver (PDW) is offered at select locations. When you purchase PDW, which is not insurance, you will not be held responsible for loss of or damage to the car in an amount equal to the applicable deductible on your personal automobile insurance, up to a maximum waiver of $1,000, provided the loss or damage was not a result of any prohibited use of the car. PDW is not available in all states.

Hertz Limited Loss Damage Waiver (LLDW)
Limited Loss Damage Waiver (LLDW) is offered at select locations. When you purchase LLDW, which is not insurance, you will not be held responsible for loss of or damage to the Hertz car up to a maximum waiver of $1,000, provided the loss or damage was not a result of any prohibited use of the car. You will be responsible for all damages in excess of $1,000.

Hertz Liability Insurance Supplement (LIS)
Liability Insurance Supplement (LIS) provides you with up to $1 million of increased protection should bodily injury and property damage claims be made against you by people injured in an accident. LIS safeguards your insurance policy and/or your personal assets for the first $1 million should such claims be made against you. LIS also provides you with up to $100,000 in coverage for combined bodily injury and/or property damage claims, should you be harmed by an uninsured/underinsured driver.

Hertz Personal Accident Insurance (PAI)
Personal Accident Insurance (PAI) provides you with coverage not to exceed $2,500 in accidental medical expense benefits for treatment of an injury sustained as a result of an accident during the rental period and rendered within 90 days. In the event of your accidental death from an injury sustained during your rental term, PAI provides your beneficiary with a benefit not to exceed $175,000 along with more limited benefits for your passengers.**

And Hertz Personal Effects Coverage (PEC) offered as a package with PAI provides:
PAI benefits described, plus coverage not to exceed $1,800 for personal effects (yours and those belonging to immediate family members traveling with you) which incur a covered loss or are damaged while renting from Hertz. Payment on such a claim will be made to you regardless of whether you already carry similar coverage such as a Homeowner's policy.

Caveat Emptor (added by me). If CDW/LDW is not part of the package then I suppose you really need to look at the cost and weigh it up versus the option at mentioned in the OP, however the USA annual coverage option for excess just does not stack up against an annual travel insurance policy as far as bang for buck goes in my somewhat humble opinion.

 

[Maca44]

From my reading of the policy wording the rental insurance excess cover offered by travel insurance is useless unless you take out the appropriate comprehensive cover when you pick up the vehicle. If you have an accident the excess you have to pay might be say $3K or $4K etc, but the cover extended by the travel insurance policy covers that $3K or $4K excess only.

It does not cover damage to a rental vehicle, only the excess you have to pay IF YOU TAKE OUT the previously mentioned travel policy that covers excess. Even if you take out the (LDW) Loss Damage Waiver at the time of hire, this only reduces the excess, whereas the travel policy cover extends to essentially cover the full excess. However, I wold suggest that it would be rare for renters on this forum to have ever needed to lodge a claim or pay excess for damage, but no doubt something will happen the day you don't do it. Remember that insurance is one thing you never want to use.

 

[markis10]

From my reading of the policy wording the rental insurance excess cover offered by travel insurance is useless unless you take out the appropriate comprehensive cover when you pick up the vehicle. If you have an accident the excess you have to pay might be say $3K or $4K etc, but the cover extended by the travel insurance policy covers that $3K or $4K excess only.

It does not cover damage to a rental vehicle, only the excess you have to pay IF YOU TAKE OUT the previously mentioned travel policy that covers excess. Even if you take out the (LDW) Loss Damage Waiver at the time of hire, this only reduces the excess, whereas the travel policy cover extends to essentially cover the full excess. However, I wold suggest that it would be rare for renters on this forum to have ever needed to lodge a claim or pay excess for damage, but no doubt something will happen the day you don't do it. Remember that insurance is one thing you never want to use.

My point in the posts is the LDW and CDW are included in the rates automatically by most companies in most countries, you dont have a choice to waive, and where its not its far less than the excess waiver. Corporate rates included LDW/CDW as standard and are usually a lot less than rack/walkup offers, and are available with a simple phone call, so if your work has not got one you can organise it, your work gets the benefit of a special rate and you dont have to worry about LDW/CDW at all.

 

[Dave Noble]

As far as US goes, LDW is included in the rates at most locations for most of the majors (and in most corporate agreements ) or there is LLDW which would invoke coverage by the "excess" coverage on insurance, they have quite a few options however I suspect travel insurance already covers these without digging deeper. From the Hertz site:

LDW is not typically included in the rates, thats why they offer LDW. Just picking a day for when Im in the US

Base amount
Daily: 3 Days at 40.99 USD
Unlimited Free Miles
Rate Code: STDR



Additional Items (included in Approximate Total Charges)

Tax 10.50 %
Airport concession fee recovery 11.10 %
Vehicle Licensing Fee 0.84 USD
Rate is guaranteed.

Total Approximate Charges 151.89 USD



Optional Items (not included in quote)
Rates for Optional Items are exclusive of tax and other associated charges

Liability Insurance Supplement

11.95 USD Per Day

Loss Damage Waiver

21.99 USD Per Day

Personal Accident Insurance / Personal Effects Coverage

5.50 USD Per Day


As can be seen , the LDW amount is over 50% of the daily rental rate . USD21.99 * 1.105 * 1.110 = USD26.97 per day ( AUD36.17 per day )

If you have a corporate agreement that covers these, then all well and good.

The liabaility amount (unlike Australia) in the event of an accident is not limited so could end up being the cost of a new car. If an annual policy does cover exceeses even when LDW is not taken, do make sure that they do not have limits such as 2-3k which they seem to have here


Dave

 

[markis10]

I would look elsewhere if I was you , Hertz include LDW in there rates in the states base don a couple of res's I did this morning. $20 a day USD does seem a lot!

 

[NM]

In the USA, the vehicle insurance laws vary from state to state. Some states require that LDW/CDW is included in the base rate, and other states do not require this. So you must read the rental agreement details to know whether it is included or not in the state in which you are renting.

There can also be limitation on driving between states in that some states require all rental vehicles to be covered by LDW/CDW type cover, and if you rent in a state that does not require this cover, and you decline the cover offer, technically you should not drive into a state that requires cover for all rental vehicles.

And some corporate rates automatically include LDW/CDW cover no matter which state the rental of made. But that does not stop the desk clerk trying to sell you the CDW/LDW cover at additional cost. Our corp rates do include this cover, and renters are told not to accept the additional cover offers made to us at the time of renting. Other insurances such as personal liability and injury are covered by our corporate travel insurance policy so should also be declined when offered by the rental car company.

 

[serfty]

I would look elsewhere if I was you , Hertz include LDW in there rates in the states base don a couple of res's I did this morning. $20 a day USD does seem a lot!

I'm in the process of making a booking for Seattle in June and can assure all that none of Hertz, Avis or Thrifty include CDW or LDW in their base rates.

To include with a Thrifty booking, it goes from USD29.00 to USD70; Hertz from USD59 ro USD94.

 

[markis10]

I would look elsewhere if I was you , Hertz include LDW in there rates in the states base don a couple of res's I did this morning. $20 a day USD does seem a lot!

I'm in the process of making a booking for Seattle in June and can assure all that none of Hertz, Avis or Thrifty include CDW or LDW in their base rates.

To include with a Thrifty booking, it goes from USD29.00 to USD70; Hertz from USD59 ro USD94.

Its my corporate rate kicking in, did a quote for seattle for June 6 for a week on a focus with hertz:

Selected Vehicle Ford Focus or Similar
Compact Car Auto Trans Air Con
Total Approximate Charges 383.42 USD

Base amount
Weekly: 1 Week at 273.00 USD
Unlimited Free Miles
Rate Code: AQIL

Rate Includes:
Loss Damage Waiver

Additional Items (included in Approximate Total Charges)

Tax 18.50 %
AIRPORT CONCESSION RECOVERY ON FLIGHT ARRIVALS WITHIN 12 HOURS: 11.10 %
CUSTOMER FACILITY CHARGE: 24.00 USD
Rate is guaranteed.

Total Approximate Charges 383.42 USD

Avis is the same:
Your Base Rate is for : 6 day(s) / unlimited mileage 263.00 USD

Car Information
Compact Class
Chevrolet Cobalt or similar
Seats 4 to 5
Holds 1 large, 1 small Suitcases

Pricing
Base Rate:

263.00

Taxes & Surcharges
Total Surcharges:
• 11.11% (Concession Recovery Fee)
• $0.61 per day (Vehicle License Fee)
• 9.7% (Rental Tax)
• $4.00 per day (Customer Facility Charge, beginning Feb. 1, 2006)

85.23

Total Tax ( 8.800% )
Mileage 25.72
Unlimited

Approximate Subtotal:

373.95 USD

Optional Coverages
Optional coverages are subject to tax in certain locations. This tax is not reflected in the Estimated Total.

Loss Damage Waiver ( Included ) --
Personal Accident Insurance ( 3.00 USD per day ) --
Personal Effects Protection ( 1.25 USD per day ) --
Additional Liability Insurance ( 12.95 USD per day ) --

I removed the corporate rate code and got exactly the same details.
Noticed they had a hummer for $500 for a week - hmmmmm, that could be handy.

 

[NM]

Serfty, have you had a look on FT in the rental car forums for some valid discount codes to try for the major rental companies? Often can get some much better prices, and some codes automatically kick in LDW/CDW.

 

[Dave Noble]

Serfty, have you had a look on FT in the rental car forums for some valid discount codes to try for the major rental companies? Often can get some much better prices, and some codes automatically kick in LDW/CDW.

Do remember though, that if they verify eligability for discount codes ( which Hertz does do ( I have had call from Hertz before to check my eligability for a corp code ) you could be in doo doo . (1) they will recalculate according to the normal rate and (2) if you had an accident , then the included LDW would no longer apply and be liable for the entire amount

Dave