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What Is A Rental Car Collision Damage Waiver?

A Collision Damage Waiver is damage insurance and "Loss of Use" coverage for cars (not trucks, not SUVs, not passenger vans, not 4 wheel drive vehicles). You get $35,000 coverage. You're covered on a per vehicle, not per person basis. This valuable plan covers repair of the rental car's physical damage and Daily "Loss of Use" charges while the vehicle's being repaired. A Collision Damage Waiver is not Liability coverage - it does not cover damage to property or injuries.

Here's A Example Of How You Will Save Money:

Here are the Collision Damage Waiver highlights:

• It's cheap - $9 per vehicle per day

• You get $35,000 coverage

• There's only a $250 deductible

• You must have lived in the US or Canada for 6 months to be an eligible resident

• This covers you for business or pleasure trips - not renting a car for local use. You have to be travelling at least 100 miles from home.

• You can get this any time before you sign the Rental Car Agreement

• You have to cover all the calendar days you have the car - even partial calendar days

• Claims are paid Income Tax-Free - You aren't taxed on the benefit received

• Any US or Canadian Resident can get this except New York, Oregon and Washington State residents

• You're covered from the time you pick up you car to the time you return your car (each calendar day)

• You can't be turned down because of your health

• Loss of use is covered

• This can supplement your regular Travel Insurance

• This CDW will not work in Israel and Italy

Keep Reading to Learn More About Rental Car Insurance

You know how it feels when you're renting a car and they're nickel & diming you to death with all those extra costs like sales tax, tourist tax, fuel surcharges, $20 - $30 a day collision damage waiver...? That's almost as much as you're paying for the car rental in the first place!

Keep control - Get your own Rental Car Collision / Loss Damage Waiver.

Skip the details, Buy Now

How Does a Collision Damage / Loss Waiver Work?

You are responsible if your rental car is damaged during your rental contract. The Collision / Loss Damage Waiver protects you from losing your money. Specifically:

1. Repair of the rental car's physical damage - not damage to property or injuries
2. Daily "Loss of Use" charges while the vehicle's being repaired

When you rent a vehicle from a rental car company (Hertz, Avis, National, Budget, Dollar, etc.), you are saying, "Yes, I'll assume all financial responsibility for the vehicle." You can either keep it or transfer the responsibility.

1. This Collision Damage Waiver - Click here to buy this Collision Damage Waiver
2. Leave a $50,000 cash deposit
3. Buy the CDW from the rental car company at $20, $30 or more a day
4. Your Personal Auto Policy - Be careful when your auto insurance company says, "Don't worry, you're covered by your auto insurance policy." That may not exactly be true in every situation:
• Loss of use often isn't covered
• Anytime you make a claim on your own auto insurance it counts against you (think higher premiums). Here are some possible claims related to a rental car: (Click here for the details on these kinds of claims)

Skip the details, buy now.

Here's how much the Collision Damage Waiver costs:

Click here to go directly to the Rental Car Coverage secure online purchase page

You can use either a credit or a debit card with the online purchase link

Here's the wording from the Certificate of Coverage:

Insurance Coverage
Underwritten by American Home Assurance Company, NAIC No. 19380 (In FL, National Union Fire Insurance Company of Pittsburgh, Pa, NAIC No. 19445), both members of the AIG Companies with their principal place of business at 70 Pine Street, New York, NY 10270. Both are currently authorized to transact business in all states and the District of Columbia.

This is only a brief description of the insurance coverage(s) available under policy series T30253AHAC (in FL:T30253NUFIC). The Policy contains reductions, limitations, exclusions, and termination provisions. Full details of the coverage are contained in the Policy. If there are any conflicts between this document and the Policy, the Policy shall govern. Coverage may not be available in all states. *Coverage is valid only if premium has been paid. Coverage not available to Washington Residents.

DEFINITIONS

"Actual Cash Value" means purchase price less depreciation.
"Exotic Vehicle(s)" includes Bentley; Ferrari; Lamborghini; Lancia; Lotus; Maserati; Pininfarina; and Rolls Royce. The Insured must contact Travel GuardÍs customer service at 1.800.826.1300 before renting to confirm whether the vehicle is covered.
"Insured" means the person shown on the rental agreement.
"Insurer" means American Home Assurance Company.
"Rental Return Date" is the return date listed on the car rental agreement.
"Rental Start Date" is the rental date listed on the car rental agreement.
"Return Destination" means the place to which the Insured expects to return from his or her Trip.
"Traveling Companion" means persons who are booked to accompany the Insured during the Trip.
"Trip" means a period of round-Trip travel away from home to a destination outside the Insured's city of residence; the purpose of the Trip is business or pleasure and is not to obtain health care or treatment of any kind; the Trip has defined departure and return dates specified when the Insured applies; the Trip does not exceed 180 days; and the InsuredÍs destination is not to another home.

EFFECTIVE DATES
Coverage will take effect when the Insured arrives on the terminal premises on the contracted departure date for the purpose of going on the Trip, provided that the required premium has been paid on or before the rental agreement has been signed.

TERMINATION DATES
An Insured's coverage will end when the car is returned on or before the Rental Return Date, or at 11:59 p.m. on the Rental Return Date if the car is not returned as specified on the rental agreement and the rental period has not been extended by the Insured.

RENTERS COLLISION INSURANCE
The Insurer will pay this benefit up to the Maximum Limit shown on the Schedule of Benefits subject to a $250 deductible. Coverage does not apply in countries or states where the sale of this insurance is prohibited by law. If the Insured rents a car while on his/her Trip, and the car is damaged due to collision, vandalism, windstorm, fire, hail or flood, while in his/her possession, the Insurer will pay the lesser of: (a) the cost of repairs and rental charges imposed by the rental company while the car is being repaired; or (b) the Actual Cash Value of the car. Coverage is provided to the Insured and Traveling Companion, providing the Insured and Traveling Companion are licensed drivers, and are listed on the rental agreement. This coverage is primary to other forms of insurance or indemnity.

EXCLUSIONS
Coverage is not provided for loss due to: (a) any loss which occurs if the Insured or his/her Traveling Companion is in violation of the rental agreement; (b) rentals of trucks, campers, trailers, off-road vehicles, motor bikes, motorcycles, recreational vehicles, or Exotic Vehicles; (c) any obligation the Insured or his or her Traveling Companion assumes under any agreement except insurance collision deductible; (d) failure to report the loss to the proper local authorities and the rental car company; (e) damage to any other vehicle, structure, or person as a result of a covered loss; (f) participation in contests of speed, motor sport or motor racing including training or practice for the same; (g) driving under the influence of alcohol; (h) being under the influence of drugs or intoxicants, unless prescribed by a Physician; (i) war or act of war, whether declared or not, civil commotion, insurrection or riot; (j) any unlawful acts, committed by the Insured, Immediate Family Member, or a Traveling Companion, whether insured or not; (k) Injury sustained while committing or attempting to commit a crime.

The Insured's Duties in the Event of Loss:The Insured must: take all reasonable, necessary steps to protect the vehicle and prevent further damage to it; report the loss to the appropriate local authorities and the rental company as soon as possible; obtain all information on any other party involved in an accident, such as name, address, insurance information, and driver's license number; and provide the Insurer all documentation such as rental agreement, police report, and damage estimate.

PAYMENT OF CLAIMS
Claim Procedures: Notice of Claim: The Insured must call Travel Guard as soon as reasonably possible, and be prepared with what coverage the loss was under (i.e., Renters Collision Insurance), the name of the travel agency or rental location, rental agreement that shows proof of travel, the amount the Insured is charged, a police accident or incident report. Travel Guard will fill in the claim form and forward it to the Insured for his or her review and signature. The completed form should be returned to Travel Guard Group, Inc., 1145 Clark Street, Stevens Point, Wisconsin 54481. (Telephone 1.715.345.0505 or 1.800.826.1300) All California claims will be administered by Mercury Claims Administrator Services, LLC. All accident, health, and life claims will be administered by Mercury Claims & Assistance of WI, LLC in those states where it is licensed.

Claim Procedures: Proof of Loss: The claim forms must be sent back to Travel Guard no more than 90 days after a covered loss occurs or ends, or as soon after that as is reasonably possible. All claims under the policy must be submitted to Travel Guard no later than one year after the date of loss or insured occurrence or as soon as reasonably possible. If Insurer has not provided claim forms within 15 days after the notice of claim, other proofs of loss should be sent to Travel Guard by the date claim forms would be due. The proof of loss should include written proof of the occurrence, type and amount of loss, the InsuredÍs name, the participating organization name, and the policy number.

GENERAL PROVISIONS
Acts of Agents - No agent or any person or entity has authority to accept service of the required proof of loss or demand arbitration on the InsurerÍs behalf nor to alter, modify or waive any of the provisions of the policy.
Concealment or Fraud - The insurer does not provide coverage for the Insured if the Insured has intentionally concealed or misrepresented any material fact or circumstance relating to the policy or claim.
Legal Actions - No one may sue for benefits less than 60 days after due proof of loss is submitted, nor more than 3 years (or the minimum period of time permitted by state law, if greater) after the date claim forms are due.
Payment of Premium - Coverage is not effective unless all premium due has been paid to Travel Guard prior to signing the rental agreement.
Termination of the Policy - Termination of the coverage will not affect a claim for loss which occurs while the coverage is in force.
Transfer of Coverage - Coverage under the policy cannot be transferred by the Insured to anyone else.

ID NUMBER 008370-CT 1/03

Common questions:

Q. Does this coverage include Liability Coverage?
A. No, coverage is only for damage to the rental car and Loss of Use.

Q. What proof do I need to furnish showing I went on a trip?
A. The destination is typically listed on the rental car agreement. That is one proof. Another would be any receipt (restaurant, gas or other purchases) while you were away.

Q. Is there a deductible?
A. Yes. The deductible is $250.

Q. My car rental company says I can only purchase coverage through them. Is this true?
A. Relax. If a car rental company refuses to allow you to use this coverage, please feel free to have them contact us toll free at 1-800-826-1300 for verification.

Q. Does this coverage cover me anywhere I rent a car?
A. No. This Collision Damage Waiver is available for travel in the United States and most foreign countries. Coverage is not applicable where precluded by law or in violation of the territorial terms of the rental agreement or prohibited by individual merchants.

Q. When does the coverage begin?
A. The coverage begins the first day you get your rental car and ends the day you return the vehicle. Note: there's an error on Travel Guard's policy confirmation page - if you get the Collision Damage Waiver, it says the coverage on the day following your purchase, when in reality it begins when you sign the rental car agreement.

Q. Are my personal items in the car covered if they are stolen?
A. No. Coverage is only for the rental car.

Q. How do I file a claim?
A. Report all claims immediately by calling 1-800-826-1300. Please be sure to report all accidents to the local police and save copies of the police reports and all receipts.

Click here to get the Rental Car Coverage

This explains a confusing part of the CDW online application: (this isn't the online application - it's just here to help you when you fill this out online)

Want the right travel insurance plan for your trip? Make one easy toll free phone call to Steve, Tara, Deanna, Becky, Teresa or Mary at 1-888-407-3854 (US & Canada) or 507-214-3854. 8 am - 10 pm Eastern time. Fast service.

Ready to Order? It's easy (and safe) to do online or over the telephone - just call Steve, Tara, Deanna, Becky, Teresa or Mary toll free at 1-888-407-3854 (US & Canada) or 507-214-3854.

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PPS - Steve also has a blog called "Who Else Wants To Understand Travel Insurance? Read it here. Or, you can  Subscribe Here