Car Rental and Insurance Excess Options

One of the most difficult and misunderstood aspects of car rental today is the accident/insurance aspect. When renting a car, most car hire companies will try, and sometimes find it very difficult, to convince you that it is in your best interest to add a collision-avoidance fee (CDW) to your daily rental. There are other names for it, but they all mean exactly the same thing. You can also appoint genuine car rentals without insurance via

Does My Auto Insurance Cover Rental Cars?

First, common sense will tell you that if it's good for you, it's not good for the company at the same time. So what's going on here? Well, most companies are practically forced to insure themselves because of their excessive insurance premiums. This means that you bear the cost of the accident yourself and replace it with "CDW". It's much cheaper for them to do this than paying huge insurance premiums for each car.

The CDW quota becomes an additional asset for the company and therefore they sincerely invite you to take it. By the way, from a legal point of view, the Australian Accident Liability Act has a precedent that it belongs to the owner of the vehicle unless you act as the owner's agent and it would be very unusual for the renter to act as an "agent" for the owner.

So it takes a lot of thought to pay extra to reduce your liability. Emotionally, it's a lot less stressful to take a deductible and not go around with big deductions that are intentionally inflated to convince you that CDW is a good idea. In practice, however, it doesn't take long to collect CDW costs and, in the event of an accident, exceed surplus payments. That's the dilemma!

Many people mistakenly believe that their regular credit card insurance will protect them from possible overdrafts. This is not always the case because in most cases you will not be affected by excesses if the car rental company offers unnecessary discounts. This is a very important point when you need to be clear about your credit card insurance.