Missouri Car Accidents: get CDW When Renting
Collision damage waiver (CDW) insurance covers the cost of damages to the rental car if you are involved in an accident. Technically, however, it is not insurance, it simply is a provision of the rental contract that addresses your liability for damages to the car. If you choose the collision damage waiver option and someone crashes into your car, you are not liable for the damage, nor or you liable for the lost profits the rental car company may claim they lost as a result of the car being out of service.
Whether or not you need this coverage depends upon your particular situation. To determine whether you need it, you should follow these guidelines. First, check with your own insurance company or read your auto policy before you rent a car. Many auto insurance policies will provide liability insurance if you injury someone else in an accident in a vehicle you have rented. However, rental cars that are damage may or may not be covered under your insurance policy depending upon the coverage you have selected. Many people believe they have full coverage, but this doesn't mean that you are in fact covered. You need to check the comprehensive and collision coverage portions of your auto policy to determine if the rental car will be covered. Furthermore, consider whether or not any damages the rental company would claim as a result of the vehicle being out of service.
Review your credit cards and member benefits from associations you belong to. Some credit cards and some associations provide benefits that will cover damages to a rental car in the event of a collision causing property damage to the vehicle. To be eligible under these programs you have to check the terms of the agreement with your credit card or the membership or association. Typically, you would decline the collision damage waiver as well as charge the full amount of the rental car on your credit card, or make your rental arrangement pursuant to your membership with the organization. Typically these memberships entitle you to a discount on the rental car in addition to any other services. Obviously, you must make sure that your credit card or member benefits provide this service. You should also fully investigate the exclusions under your credit card or membership agreement because sometimes they do not provide such services to any rental dealer, and may have limitations.
If you do not have appropriate coverage under a auto policy, or credit card or membership benefit, then you should strongly consider buying collision damage waiver insurance. Rental cars tend to be newer cars and the value of repair/replacement of the car could run into the tens of thousands of dollars. CDW damage pays for loss of use that is claimed by the rental car company. Most states do not cover loss of use under their auto insurance policies. In other words, your legislature and department of insurance do not force insurance companies to offer this coverage. There are a few states that are exceptions including Alaska, Connecticut, Louisiana, Minnesota, North Dakota, New York, Rhode Island and Texas. However, Missouri does not mandate loss of use under auto policy; therefore, it is likely that your policy does not provide it.
Think carefully if you are a Missouri resident before declining the collision damage waiver coverage.
Mr. Faiella is a member of the law firm of Tatlow, Gump, Faiella & Wheelan, LLC. If you are having problems with an insurance issue or injury you can contact him through his firms web site www.tgflaw.com.
Whether or not you need this coverage depends upon your particular situation. To determine whether you need it, you should follow these guidelines. First, check with your own insurance company or read your auto policy before you rent a car. Many auto insurance policies will provide liability insurance if you injury someone else in an accident in a vehicle you have rented. However, rental cars that are damage may or may not be covered under your insurance policy depending upon the coverage you have selected. Many people believe they have full coverage, but this doesn't mean that you are in fact covered. You need to check the comprehensive and collision coverage portions of your auto policy to determine if the rental car will be covered. Furthermore, consider whether or not any damages the rental company would claim as a result of the vehicle being out of service.
Review your credit cards and member benefits from associations you belong to. Some credit cards and some associations provide benefits that will cover damages to a rental car in the event of a collision causing property damage to the vehicle. To be eligible under these programs you have to check the terms of the agreement with your credit card or the membership or association. Typically, you would decline the collision damage waiver as well as charge the full amount of the rental car on your credit card, or make your rental arrangement pursuant to your membership with the organization. Typically these memberships entitle you to a discount on the rental car in addition to any other services. Obviously, you must make sure that your credit card or member benefits provide this service. You should also fully investigate the exclusions under your credit card or membership agreement because sometimes they do not provide such services to any rental dealer, and may have limitations.
If you do not have appropriate coverage under a auto policy, or credit card or membership benefit, then you should strongly consider buying collision damage waiver insurance. Rental cars tend to be newer cars and the value of repair/replacement of the car could run into the tens of thousands of dollars. CDW damage pays for loss of use that is claimed by the rental car company. Most states do not cover loss of use under their auto insurance policies. In other words, your legislature and department of insurance do not force insurance companies to offer this coverage. There are a few states that are exceptions including Alaska, Connecticut, Louisiana, Minnesota, North Dakota, New York, Rhode Island and Texas. However, Missouri does not mandate loss of use under auto policy; therefore, it is likely that your policy does not provide it.
Think carefully if you are a Missouri resident before declining the collision damage waiver coverage.
Mr. Faiella is a member of the law firm of Tatlow, Gump, Faiella & Wheelan, LLC. If you are having problems with an insurance issue or injury you can contact him through his firms web site www.tgflaw.com.
