Poole, England (PressExposure) October 05, 2009 -- One of the most confusing parts of booking a hire car is the issue of Collision Damage Waiver Insurance (referred to as CDW Insurance). This article outlines CDW cover including the possible pitfalls.
Car rental contracts may offer a range of insurances, these can vary from "full insurance" to 3rd party.
3rd party only insurance does not cover any damage to your own hire car, and this could prove costly. Full insurance should include damage to your own vehicle but there may still be an excess figure.
So what is Collision Damage Waiver Insurance? Basically CDW Insurance covers damage to your own vehicle, and may or may not be included in your car rental agreement. Even if it is included, there is likely to be an excess figure for which you will be liable.
The following questions should be asked to your car rental company: # If you do NOT take out CDW Insurance... How much are you liable for in the event of an accident? # If CDW Insurance is included in the standard rental agreement... Is there an excess figure, and if so how much? (there is still likely to be an excess for which you are liable in the event of an accident) # If CDW is sold as an optional extra... Is there an excess figure? (many policies include an excess even if CDW insurance is purchased separately)
Rute Oliveira of Blue Valley Car Hire explains "we provide online booking for car hire at Malaga Spain and car hire at Faro Portugal. The issue with some of the cheaper rental companies is the excess figure when you don't take out CDW Insurance. Many of the companies offering very cheap hire cars have high insurance excess figures if you don't take out separate CDW cover.
There are also some unscrupulous companies who make additional income by charging for damage which wasn't noted on the vehicle check sheet.
Search on the internet for reviews about the company that you are thinking of booking with. There are great sites like Trip Advisor and Travelsupermarket.com where you can find reports from customers who have good/bad experiences with a particular car hire company.