When {renting | hiring} a {car | vehicle} possibly one of the most misunderstood aspects is the insurance. {Companies renting cars | Rental car companies} will always and should offer you to reduce your liability excess to cover the damage costs should you be involved in a car accident. The terms they will use is Collision Damage Waiver (CDW) and they will {encourage | persuade} you strongly to take this option in your best interest.
Of course it is hard to {comprehend | understand} that it is good for you how can it possibly be good for them the car rental company. The basic {problem | fact} is that at {approximately | about} a {thousand dollars | $1000} per {annum | year} per {vehicle | car} to insure comprehensively a rental car it is in no way viable to take up this option. Instead it is a cheaper and a more profitable option to create a high excess which encourages every rental car {customer | client} to take up the {collision damage | CDW} option if sufficient people do so then it becomes a {major | big} profit factor for the car {rental | hire} company. As a matter of interest in Australia today the legal precedents for liability in a {car | vehicle} accident lies with the owner of the {car | vehicle} unless the driver is acting as an agent for the car {rental | hire} company and this is {highly | very} unlikely.
Therefore it does require a lot of {consideration | thought} as to whether or not you pay the extra to reduce {your | the} liability. Emotionally it is {far | much} less stressful to take the excess reduction and not be driving around with a high excess that has been {deliberately | intentionally} {inflated | puffed up} in order to convince you that the {CDW | Collision Damage Waiver} is a good idea. Practically speaking though, it doesn’t take long for the {CDW | collision damage waiver} costs to add up and amount to more than paying the excess in the unlikely event you have an accident. Therein lays the dilemma!
{Clients | Customers} often have the wrong idea when they {believe | think} that their credit card insurance covers them for car hire accident excesses. Not always true, you should check with your {car | vehicle} insurance company and read your {contract | policy} and the small print in many {cases | instances} if you have been offered an excess reduction by the {car | vehicle} {hire | rental} company the credit card insurance may or may not cover you, or may only cover the {difference | gap} between the two excesses.
Whether you are booking {online | via the internet} or in person, when you book the {rental | hire} {car | vehicle} is when you should be looking at this option of {CDW | collision damage waiver}. As we have said previously the {car | vehicle} {rental | hire} company will do their best to {get | persuade} you to take the excess reduction option after all this is a profit area for them.
Next we have the situation where the unthinkable happens, a {car | vehicle} accident. Assuming {no one was hurt | there is no injuries}, in which case the first objective will be to approach the other driver or drivers and collect their full particulars. This will include sighting their driver’s license and noting its full details. A tip here is to confirm that the address on the license is in fact their current address of the driver. An ambulance should be called as soon as possible if there are any injuries. If the accident has {occurred | happened} in a busy {location | place} you may need to move the {vehicles | cars} but it is always best to leave them if possible unless the police {instruct | get} you to move the {cars | vehicle}. The police will need to be called depending on the severity of the accident or if anyone has been {injured | hurt}.
Most unfortunately along with the {trauma | shock} of the accident you will probably now have to {deal | contend} with several {extremely | very} competitive and {aggressive | forceful} tow truck {drivers | operators}. Whatever happens under no circumstances should you {allow | permit} them to touch your {rental | hire} {car | vehicle} unless you are {directed | told} to do so by either the police or the {car | vehicle} {hire | rental} company. All tow truck {drivers | operators}/companies are paid a highly inflated rate for what is {called | referred to as} a “police tow”. This tow will {ultimately | in due course} have to be paid for by someone and that someone could be you. On top of that the tow truck {driver | operator}/company also receives a commission from any panel {beater | repairer} that he delivers the {car | vehicle} to with whom he has an arrangement. Hence the reason for his “{keenness | enthusiasm}” to tow your {vehicle | car}! Once he has your car hire vehicle attached to his truck it is very difficult or impossible to get him to release the {car | vehicle}.
Try to work with the {car | vehicle} {rental | hire} agency to sort out all the details and a course of action to follow. The normal procedure is that you would have to pay the excess and that would most likely be actioned on your credit card even before you got back to the office. Then you would set about recovering your money once fault had to determined.
Do your {research | homework} when it comes to insurance and rental cars be reassured that there are only a very few collisions. Drive Safely
