Many tourists prefer to travel by car and often turn to car rental services. In this case, you definitely need to know what CDW insurance is and why it is so important.
First, it provides protection against financial loss in the event of an accident or damage to the rental car. Why is it important? For example, check how much is a rolls royce in dubai and estimate how much it will cost to repair it during your UAE vacations. Then you will understand that insurance is very profitable. Secondly, car rental insurance can cover medical expenses if you are injured or injured in an accident. In addition, the insurance covers liability to third parties. This means that if you cause damage to another vehicle, property, or personal injury, your rental car insurance will help you cover those costs. Finally, car rental insurance may include additional services such as towing, roadside assistance, and a replacement rental car in the event of a breakdown.
CDW insurance – what is it?
People argue if it is worth having a car in a city and many choose to rent. When renting a car, companies must include insurance in case of damage to the vehicle in the rental price. The client can choose from several options, varying in price and conditions. These include:
- СDW or LDW – insurance of a car against damage, excluding theft. The lease agreement stipulates the presence of a franchise (this will be discussed in more detail later).
- TW, TI, TP – a policy that provides compensation in case of theft. It is offered as an addition to basic insurance and is mainly required only for rental vehicles in disadvantaged countries.
- TPI or TPL – covers losses that happened to someone through your fault.
- Super CDW (SCDW) or SuperCover – covers the total cost of damage, with no deductible. Even if you receive minor scratches, repairs will be made at the company’s expense. This form is the most reliable, but expensive. It will cost at least 20 euros per day. But of course, you can travel cheaply and choose more suitable options.
What does CDW insurance include?
CDW insurance includes compensation in case of damage or malfunction of the rented car. This protection does not cover cases of vehicle theft abroad, as well as damage caused to rims, headlights, tires, and car windows. In this case, you will have to pay for the repairs yourself. In addition, this type of policy does not cover losses up to the deductible amount. These funds are usually blocked on the client’s bank card and debited if compensation for damage is necessary after renting the car.
Advantages and disadvantages of CDW insurance for a rental car
The positive aspects include:
- low cost;
- coverage for the risk of damage to the vehicle;
- reduction of financial liability for the consequences of an accident.
The disadvantages of such a policy are:
- availability of a franchise;
- lack of compensation in case of vehicle theft;
- Repairs related to wheels, headlights, tires, and glass will have to be done at your own expense.
Despite the above circumstances, you cannot rent a car without insurance. And this option is the least expensive for customers.
Where and how to properly obtain franchise insurance when renting a car
The deductible is that part of the damage that the tenant himself undertakes to pay; this is the largest amount of money that will have to be paid independently as a result of an insured event. Anything more is paid by the company. The average franchise for car rental is 850 euros, although it can deviate significantly in one direction or another. This size means that in the event of an accident, you will have to pay 800 euros out of your pocket; the rest will be compensated for by the organization. There is also an alternative. To do this, you should contact a third-party insurance company. They offer risk coverage in the amount of the deductible, that is, they remove your responsibility.
How to draw up a rental and insurance agreement
The lease agreement usually has a standard form developed by the rental company. The client must check the correctness of the entered personal information and documents. You should carefully study the contract for the maximum permitted daily mileage (if there is such a clause), otherwise exceeding it will result in additional costs, and also pay attention to the specified deductible amount. If you have little driving experience, it is better to pay extra for full insurance.
Thus, CDW insurance covers the main risks associated with car damage. However, if it is necessary to provide for greater liability of the company, it is worth purchasing other policy options.
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