You are renting a car or truck.
While standing at the rental counter the clerk asks "Would you like the damage waiver?" You are in a hurry so you say "no.
" You get in the vehicle and wonder if you made the right choice.
Hopefully nothing will happen during your rental period.
What if you have an accident? Will your insurance cover the vehicle if something should happen? Everyone's policy is unique to their needs.
Check with your insurance agent before you rent a vehicle.
Damage waiver is NOT insurance.
It is what it says.
If you accept the rental company's damage waiver it waives your responsibility for damage incurred during your rental period.
Credit Card Coverage for Automobile Rentals It is true that many credit cards cover rental cars in case of an accident.
Visa, for instance will cover the rental car as long as you use that card for the deposit and rental fees.
When your insurance company says they will cover the car, your Visa will cover the deductible and your insurance would pick up the rest.
Check the terms of your credit card to see what they actually cover in case of an accident.
In most cases you must decline the rental company's damage waiver for the credit card company to pay.
Specialty vehicles and pick up trucks are usually not covered.
Truck Rentals Are Different Than Car Rentals Trucks are not covered by major credit cards.
Most insurance companies do not cover the physical damage to trucks.
An exception would be if you have a business insurance plan.
If you are renting a truck as a business you should check with the agency about commercial rentals.
Different rules apply.
You may also need a special driver's license depending on the size of truck you are renting.
There are other conditions with damage waiver on truck rentals.
Overhead damage is excluded from coverage with many companies.
The rental service may also offer a variety of damage waiver options at difference prices.
Have your agent explain your choices so you can make an educated decision.
Do the smart thing, accept the damage waiver.
Avoid the hassles and paperwork.
Fill out the accident report and walk away.
The accident is between you and the rental company, your insurance is not notified and your insurance rates will not go up.
If you still choose to decline damage waiver, be aware that you are responsible for the vehicle.
You could also be responsible for the loss of rentals while the vehicle is being repaired.
That could cost more than the repair alone.