Loss Payment. The rental agreement may require immediate reimbursement for damages, and it is custom

To paraphrase Shakespeare, "To purchase the CDW or not to purchase the CDW, that is the question." It has been debated for years whether or not a person renting a vehicle should purchase the Collision hotels in manchester airport (or Loss) Damage Waiver from the rental company. Our recommendation is that consumers, in general, SHOULD purchase the CDW/LDW, at least for short-term rentals. Our reasons are given below.
Loss Valuation. hotels in manchester airport The personal Auto Policy (PAP) covers the lesser of the "actual cash value" of the vehicle or the amount "necessary" to repair or replace the damaged property. The rental agreement may very well contractually obligate you to reimburse the rental company for the "full value" of the vehicle. The PAP also does not pay for any "betterment" (increased value of new parts replacing old ones) of the vehicle, nor any "diminution" of value (if the market value of the vehicle after repairs is less than that before the accident).
Loss Settlement. As implied above, hotels in manchester airport there may very well be disagreement over the value of the vehicle or the amount charged for labor and materials to repair it. Your auto policy's Appraisal clause may be invoked with its accompanying costs. More importantly, the insurance company has the right to "…inspect and appraise the damaged property before its repair or disposal." However, the rental company, unlike you, is not contractually obligated to the insurer…it may choose to make the repairs immediately, potentially resulting in a lack of PAP coverage because of failure to comply with this contractual condition. hotels in manchester airport In any case, purchase of the CDW usually allows the renter to "walk away" without the headaches involved hotels in manchester airport in adjusting an auto claim.
Loss Payment. The rental agreement may require immediate hotels in manchester airport reimbursement for damages, and it is customary hotels in manchester airport practice for the rental company to charge your credit card. This can create a significant debt, "max" out the card's credit limit (perhaps shortening a vacation or business trip), result in litigation, etc.
Loss Damage Waivers (LDW). Rental agreements often make the renter responsible for any loss in value beyond normal wear and tear, regardless of the cause and regardless of fault. In order for your PAP to respond, you must insure at least one vehicle for both collision and other-than-collision (often called "comprehensive") coverage. If not, your policy will not respond to rental car damage and loss of use claims.
Administrative Expenses. The rental contract may make the insured liable for various "administrative" or loss-related expenses such as towing (e.g., one insured was charged for a 230-mile tow), appraisal, claims adjustment, storage, etc. Some of these expenses may not be covered by the PAP.
Other Insurance. The PAP says that it is excess over: (1) any coverage provided by the owner of the auto, (2) any other applicable physical damage insurance, and (3) any other source of recovery applicable to the loss – travel policies, credit card coverages, etc. The potential controversy over who pays what is obvious and can result in litigation. In addition, keep in mind that many states have statutes, proprietary policy forms, and/or case law precedents that may govern this and other rental hotels in manchester airport car exposures.
Excluded Vehicles Territories. The PAP normally does not provide physical damage coverage for motorcycles, mopeds, motor homes, or other vehicles that are not private passenger autos, pickups, vans, or trailers. In addition, use of covered vehicles is limited to the US and its territories hotels in manchester airport and possessions, Puerto Rico, and Canada (the rental agreement may also exclude operation outside a specific geographical area). If you rent a trailer hotels in manchester airport (U-Haul, camper trailer, etc.), coverage is limited hotels in manchester airport to $500.
Excluded Uses Drivers. The PAP may have limitations on use of vehicles that are not otherwise excluded by the rental agreement CDW or LDW. Also, the PAP may include an exclusionary endorsement for certain drivers or may apply only to designated individuals – the CDW will probably also only apply to certain individuals, but operators for which no PAP coverage is available may be afforded protection under the rental agreement by adding them as designated drivers.
hotels in manchester airport Additional and/or Future Costs. The PAP will most certainly include a deductible in the range of $100-$500 or more. In addition, hotels in manchester airport payment for damage to a rental car may result hotels in manchester airport in a significant premium increase (if not nonrenewal) via surcharges or loss of credits.
Although most CDW/LDW fees are considered outrageous, if not unconscionable, we advise you to purchase the CDW/LDW for short-term rentals. If anything, this will give you peace of mind while on vacation or business, and it could save you from a lot of inconvenience and lost time and money.
When you rent a vehicle, ask for an advance copy of the rental agreement in order to determine your contractual obligations for damage. A few rental car companies post this information on their web sites. Here is a listing of several national rental car company websites:
At M&M, we have spent years investing in the lives of our customers here in the Mount Washington Valley. We've had the privilege of building hotels in manchester airport relationships with some of the best this Valley has to offer, and we're proud to call them clients, and friends. Take a look at our Client Showcase and you'll see what we mean. Read More »