Collision Damage To Rental Car: Fill & Download for Free

Do I need to buy collision insurance for a rental car if I have auto insurance?No. You don't need to buy collision insurance (called: Collision Damage Waiver, Loss Damage Waiver) for a rental car when you have auto insurance. But, it might be wise if you did. Read on for more information.Contact your Agent/Company Representative:If your auto insurance includes Comprehensive and Collision coverage it is likely your rental car will be covered for physical damage. Every state and company are different, so call your agent or company representative to confirm how your policy will respond.New York is an exception. This post will explain the unique rental car coverage provided by an Auto Policy in New York.Why Purchase Collision Damage Waiver?:If you are not in New York State, Collision Damage Waiver may be worth considering regardless of whether or not you have appropriate auto insurance coverage. Why? Damage Waivers will remove your responsibility for expenses and fees that car rental companies attempt to collect, that many auto insurance policies will not pay such as:Diminution of ValueRental FeesAdministrative FeesLoss of UseDamage Waiver will also remove the potential for a claim negatively affecting your personal auto insurance rates along with the hassle of dealing with a claim.Explore Credit Card Options:If interested, take a look at this post regarding American Express Premium and Primary Rental Car coverage. American Express offers some of the best rental car insurance available on a credit card. This coverage is worth consideration by people with good insurance coverage if only to avoid the claim on your policy.Two other posts on Primary Rental Car Insurance that provide good information:MillionMileSecrets .com - 13 Credit Cards that offer Primary Rental Car InsuranceThePointsGuy .com - Credit Cards that offer Primary Car Rental CoverageGood question. Best regards.

What does a collision damage waiver not cover?An excellent question. Let’s start with what may be obvious.Liability and Personal Injury Protection/Medical Payments: Collision Damage Waiver does not cover:Injury or Property Damage to Third Parties (people, property outside your vehicle)Injuries to you and others in your carThese exposures typically can be purchased through supplementary insurance or your auto insurance policy.Physical Damage to the Rental Vehicle:Collision Damage Waiver will dispense all damages and fees following loss to a rental car, but it important to know there are numerous exclusions. (See a sample AVIS contract) Those exclusions include the following:Damage intentionally caused or by reckless conductDamage caused while under the influence of alcohol or drugs.Damage caused while racingDamage caused while committing a crimeDamage caused while suing the car outside the US or Canada.Damage caused while using the car on a surface not intended for use by Private Passenger Autos. (IE: 4-wheeling!)Damage following a vehicle rented using misleading information.Damage following an accident where you fail to promptly notify the rental car agency or police.Damage caused by an unauthorized driver.One of the most frequent reasons that rental car companies deny coverage is because of unauthorized use of the rental vehicle. It is important to note, that most auto insurance policies will also exclude use of a rental vehicle by a person not “entitled to do so”.Moral of the question…. Make sure you understand the terms of your rental car agreement!

Many used vehicles purchased by consumers have been rental vehicles in their previous life. In many cases, the consumer is unaware of the car rental history of the used vehicle they are buying.Purchasing a used rental car “direct” however comes with advantages and disadvantages:First… How do Rental Car Companies Sell their Used Vehicles?:Repurchased by ManufacturersOften called “program cars” these vehicles were sold to car rental companies by the manufacturer with the understanding they would be returned in about a year. The program vehicles are then sold to dealers at auction, ultimately sold to consumers.Wholesale AuctionRental car companies may also sell their older fleet through dealer auctions. These vehicles show up on used car dealers lots of all different stripes.Salvage AuctionVehicles subject to significant damage are sold at salvage auctions such as Copart, Insurance Auto Auctions and Global Insurance Auction. Many of these vehicles are repaired and then sold to the public.Direct to ConsumersCars sold directly to consumers are in better condition and worthy of a higher retail price. See below a list of the major car rental companies websites where they sell cars directly to consumers.So… what are the Pros and Cons?PROS:Rental Car Maintenance ProgramsCar Rental companies are legally held to a high duty of care to their customers. That means they must provide their customers with safe, sound vehicles or face potential stiff legal consequences. Due to that threat, rental car companies institute programs to make sure rental cars are regularly maintained.Most major rental car companies employ their own vehicle maintenance staff. One could make the argument that rental cars are better maintained on average than vehicles owned by individuals.Pre-Sale InspectionRental Car companies propose that they put their vehicles through a rigorous inspection process before selling them to the public. AutoGuide .com interviewing Enterprise VP Chris Kossmeyer reports Before any used vehicles go on sale “We bring them through a very stringent mechanical and cosmetic inspection” which includes a 109-point certification.All Rental Car Companies suggest they provide pre-sale inspections. See these links for more information: Enterprise, Hertz, Avis, Dollar/Thrifty.WarrantySome rental car companies now offer warranties with the sale of their used fleet vehicles.Hertz and Enterprise offer a 1-year, 12,000 mile limited warrantyAvis offers a 6-month, 6,000 mile limited warrantyMost companies will sell extended warranties on top of those offered by the car rental agency.Test DriveCompanies are offering return the car “test drives”Enterprise offers 7-day, 1,000 mile repurchase agreementHertz has a 3-day Rent2Buy test rentalAvis provides a 2-hour, 3-day “rent the car” drive test.CONS:Incomplete CarFax InformationCarFax pulls their data on vehicles from a number of sources including; Insurance Company Claim Information, US Motor Vehicle Agencies, Auto Auctions, Collision and Repair Facilities, State Inspection Stations and Law Enforcement.Since many rental car companies will take care of damage to vehicles outside of the typical insurance company claim process, some damages repaired directly may not show up on a CarFax or similar report.Abuse?:Other posters have commented on abuse to which rental vehicles are subject. The evidence is thin and anecdotal. Many rental cars are purchased by business travelers and mature adults on vacation. Compared to how many take care of their personal cars, this may not be much of a disadvantage.Who are the Major Car Rental Companies and Where can I find their Used Cars?:Enterprise Used Car Sales - Brands: Alamo, National & Enterprise Rental CarHertz Used Car Sales - Brands: Hertz & Advantage Rental CarAvis Used Car Sales - Avis and Budget Rental CarDollar Thrifty Used Car Sales - Dollar and Thrifty Rental CarAs with any used vehicle purchase, do your pricing research ahead of time. NADA, Edmunds and/or KBB provide insight on getting a good deal. Having a knowledgeable mechanic check over a vehicle prior to purchase is also a hedge against a regretful decision.Summary… Outside a purchase from a reputable local dealer, purchasing a used rental car comes with numerous advantages.