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If your rental car is involved in an accident, who’s responsible for the damages? That’s a very good, popular and misunderstood question. Is a collision damage waiver necessary? Is it important to have a personal umbrella liability policy in place before renting a car? Contact us for more information about things to know before renting a car.
In the meantime, you may find some of your questions answered below.
What is the collision damage waiver offered by rental firms?
The collision damage waiver is a release of your obligation to pay the rental company if the rental vehicle is damaged, as long as you have complied with all the terms of the rental agreement. Rental contracts vary, but generally they require reimbursement up to the full value of the vehicle rented, as well as loss of use and administrative fees in the event of damage to the vehicle. This could amount to $80,000 or more depending on the vehicle rented.
Do you need to buy the collision damage waiver?
If you do not have a personal auto policy, you should always purchase both the collision damage waiver and the liability insurance supplement coverage offered by the rental company.
If you have a North Dakota or Minnesota personal auto policy in your name, it provides coverage for damage to most, but not all, rental vehicle situations by state law. You should consider purchasing the collision damage waiver and contact your agent before renting a car to ensure your policy would apply to your situation.
What are some advantages to purchasing the waiver?
The broadest protection is achieved by:
Before renting a car:
When renting vehicles, remember to:
Disclaimer: The above information is based on the “ISO standard” Personal Auto Policy in force in most states at the time of publication and typical rental car agreements. Be aware that these contracts may vary from state to state and there may be statutory exceptions (e.g., the State of NY) that may govern. In addition, these provisions can change at any time, so it is important to review the laws and contracts in effect in your jurisdiction at any point in time. Due to the brevity of this information, we cannot analyze every possible loss exposure and exception to the general guidelines above.