Taking Cover? CDW and other Rental Car Insurance Products Explained

Feb. 8, 2010 - PRLog -- Before looking in detail at the car rental insurance products, it is important to understand what is meant by the insurance "excess" figure. The excess is an amount which the hirer of a rental vehicle may be liable to pay in the event of damage occurring to the rental vehicle. The excess amount may typically range from a few hundred to one thousand Euros, with the figure increasing as the value of the rental vehicle increases (the excess on a small car will generally be lower than for a minibus for example). The CDW excess figures will be available from the rental company.

NOTE: The excess charged in the event of damage should be proportional to the cost of repair to the vehicle.

Third Party Insurance Third party insurance covers damage to passengers and the other vehicles involved in the case of accident. Most rental companies will include a basic third party insurance in the rental agreement as it will be required by law.

Third party insurance may not include fire and theft, meaning that if the car is stolen you will be liable for the full insurance excess amount.

To supplement the third party insurance, any or all of the following insurances may be offered by the rental company:

CDW (Collision Damage Waiver Insurance)
CDW Insurance waivers your liability to pay the insurance excess figure. CDW Insurance covers damage to the rental vehicle, and usually also covers excess figure if the vehicle if it is stolen (in some cases theft insurance may be sold separately). It will usually be charged at a daily rate and may include a small excess (the excess will be a much lower amount than if you had only the basic third party cover).

There are generally items which may be excluded such as tyres, windows, upholstery, etc.

Full Insurance/Super Insurance/Premier Insurance
Sometimes companies offer an additional insurance which is a combination of CDW/PAI and may also reduce the CDW excess figure.  The insurance may insure items not covered by CDW insurance such as tyres, wheels, undercarriage, etc.

PAI (Personal Accident Insurance) Some hire companies offer personal injury insurance in the event of accident. You may already have this cover if you have purchased holiday insurance. It may also cover items stolen from the vehicle.

Matt May operations manager at UK based company Blue Valley Car Hire explains "if you are worried about the insurance terms and conditions ask your prospective rental company to give you details in advance of your trip. There are companies who are notorious for charging clients for minor damage which was not picked up at the vehicle check. It is adviseable to search the internet for reviews of car rental companies before you book."

For more information please visit our website http://www.bluevalleycarhire.com


Blue Valley Car Hire are a UK company offering an internet booking service for low cost car hire at a number of locations in Southern Europe including Alicante, Faro and Malaga.