Should you buy a loss damage waiver for rental cars?
Rental cars come with piles of legal information and liability forms that look like they’re written to confuse the customer. Renting a car can be a difficult process and put you literally in the driver’s seat when it comes to damage liability.
What is it?
A loss damage waiver is essentially an insurance policy purchased from the car rental company that protects the borrower from incurring costs related to damage. The fee usually amounts to about $20 per day, even with budget car rental businesses. What people do not always know is that they might already be protected by their existing car insurance, or from their credit card.
Before renting a car, call and see if your insurance will cover a rental car. Most insurance companies do have some type of damage protection that extends past your normal deductible. Unless you are buying the state minimum car insurance from a discount insurer, it would be wise to make a call to see what options are available through your own policy.
Credit card benefits
Paying for a car rental with a credit card may also protect you from any liability. Most credit cards will make you free from liability from collisions. Some better cards will protect from dangers such as fire, weather or theft, although this is only available with a select few cards.
If you are not protected by your credit cards or insurance policy you might want to do some math. Most companies charge $20 per day, which is equal to $600 per month. If you’re not willing to spend this amount on your car, you shouldn’t be willing to spend that much on someone else’s. Make sure that you note all dings and scratches before you get in the car and record anything that you might be blamed for later.Not worth it
For reasonable drivers, the extra $20 probably is not worth it. Small damages will not warrant a $20 a day charge and you safe driving won’t allow you to get into a large accident. The best insurance policy is to drive safely and save money.
