- If you damage the rental then the credit card you used to place the security deposit will immediately be charged the amount of the deductible on your auto policy. Most often this means a charge of $500 or $1000. (assuming you have the correct coverage on your policy)
- If you are at fault in a collision then your driving record will be affected causing the cost of your auto insurance to increase at your next renewal.
- You could be charged additional costs as well. These additional fees can include Administrative fees, Loss of Use, Diminishment of Value and possibly others depending on the rental car company. It is possible your auto insurance policy may pay one or more of these fees. In a recent claim only the Loss of use was covered.
So, in short if you purchase the “Full Damage Waiver” you can just walk away from any and all damage, get your deposit back. No fees or surcharge will be applied since your insurance company won’t have to pay for the damage. This alone makes rental car insurance well worth the investment.
Next time you rent a car look for this waiver, but it may be called something else. Read the contract and add the waiver to save yourself a boat load of hassle that could come your way, if damage is done.
About the Author:
*Please note, I am a licensed agent in the state of Massachusetts. Details may vary state to state. I have prepared this as a summary of my experience with rental cars, it is intended as an item for consideration. Please do your own research and read your contracts when renting a vehicle.
Written by Bonnie J. O’Hara CISR
Barrows Insurance Agency, Inc.