Should I Purchase Loss Damage Waiver on a Rental Car

Purchasing a loss damage waiver, or LDW, on a rental car is seen by some as a waste of money. However, it gives the renter extra financial protection and peace of mind in the event there is a mishap with the rental car. Drivers with high deductibles or basic auto insurance should definitely consider purchasing the loss damage waiver. Furthermore, some companies may require their employees purchase a loss damage waiver when renting a car for work, so it is prudent to find out. Proof of auto insurance is required by all car rental companies, usually in the form of a car insurance certificate. In circumstances where a renter is legally licensed to drive but does not have car insurance, the car rental company can require the purchase of loss waiver coverage.

Understanding a Loss Damage Waiver

A loss damage waiver is an optional insurance policy taken out by a car renter at the time of rental. The additional coverage costs an average of $20 per day, but will vary depending on the type of rental car and the rental car company. The loss damage waiver protects the cart renter should the car become damaged; whether it is from an accident, an act of vandalism, or if the vehicle is stolen. Without this coverage it is possible the renter could be responsible for several hundred dollars in deductible and loss of use costs. In extreme situations, the car renter may be responsible for the replacement cost of the rental car. While a loss damage waiver is ordinarily optional coverage, some car rental companies may require this coverage be purchased as part of the rental agreement, especially on more expensive vehicles.

Supplemental Insurance Protection

Some credit card companies offer supplemental car rental insurance if the rental is reserved and paid for using the card. Terms and conditions vary greatly depending on the type of card used and the credit card company. With so many credit card companies offering rental coverage as a perk, it is prudent to find out which card offers the best protection and what the terms and conditions are for such coverage. Supplemental insurance only covers expenses not covered by auto insurance and is generally not intended as a replacement for the loss damage waiver coverage.

Car Insurance Rental Coverage

Renters should check with their insurance company to see what car rental coverage they have, if any. However, many insurance companies do not offer sufficient rental car coverage. The coverage offered may only be supplemental coverage. When using a rental car, it is important to keep both the rental agreement and car insurance card in the car in the event they are needed. Most locales require all drivers to have proof of insurance with them at all times.

Deciding whether or not to purchase the loss damage waiver can depend on a lot of things. However, for most car renters, it is a good choice. The peace of mind and financial protection it offers can easily make the added expense a worth while investment.