Collision Damage Waiver (CDW) – is not insurance, but an agreement to waive the costs of damage to your rental vehicle if it is involved in a collision. Frequently CDW has an ‘excess’ which is the first part of any claim which the renter will remain liable for.
What is excess amount car rental?
In the context of car rental, excess is the amount of money for which the renter is held responsible under the terms of the car rental agreement as a result of the loss of or damage to the rental vehicle. This can include fire, vandalism, theft, and loss of use depending on the supplier.
What does zero excess mean when renting a car?
Some of these policies will cover more parts of the car than standard Collision Damage Waiver. Some reduce your excess. Some take the excess all the way down to zero, so you won’t pay anything at all if you damage something that’s covered. These are called ‘zero excess’ policies.
What does car insurance excess mean?
A car insurance excess is the amount that you have to pay yourself if you make a claim. There are two types of excess: Compulsory excess – this is a fixed excess, set by us, which you’ll have to pay if you make a claim. The amount varies depending on your circumstances.
Is CDW the same as excess insurance? – Related Questions
What is car rental excess charges and return?
An excess is the maximum amount (*) you would have to pay in case of damage to the vehicle. When signing the rental contract, all or part of the excess (**) is withheld on the credit card. If you return the car without damage the amount retained is returned.
What does deposit excess mean?
Excess Deposit means the amount stated in your rental agreement that you are responsible for in the event of damage to the insured vehicle. Less any applicable charges, including but not limited to administrative charges, Miscellaneous charges.
What is refundable excess?
Refundable Excess is a service from Auto Europe that allows you to claim back your excess paid to the rental company, should there be damage to the rental car or if the vehicle is stolen.
What is the damage excess?
The amount you need to pay in case of an accident is called an “excess” or “liability”. This financial obligation comes in many other names, such as Damage Liability Fee, Accident Damage Excess, Rental Vehicle Excess, and Damage Recovery Fee.
What happens if you damage a hire car?
If the rental company finds new damage to their car after your rental, they will charge you for repairs. They’ll take the money from the credit card you used to leave the security deposit. You’ll probably be charged immediately after you return the car.
Do I pay excess if I damage another car?
Yes – unless you or another driver of your car have a no-fault accident, you have to pay the Basic Excess and any additional excesses that apply.
Do I have to pay the excess if it is not my fault?
Paying excess for a car accident that isn’t your fault
If your insurance company have dealt with the claim, they should claim the excess back for you. If you have a no fault accident, a credit hire company can also make a claim on your behalf.
What happens if damage is less than excess?
What if repair costs are lower than expected? Sometimes the total claim cost can end up costing less than the excess charged. In these cases, you’ll be refunded the difference.
Is voluntary excess worth it?
Why would I choose to have a voluntary excess? The amount of voluntary excess you have can significantly impact the cost of your car insurance premium. By choosing a higher voluntary excess, you will reduce your premium; but you will also have to pay more if you do make a claim.
Is it better to have high or low excess?
Generally, a higher excess is considered higher risk. But it might save you money right now. If you’re an infrequent driver and mostly have your car safely stored then the level of risk may be low and the savings could be great.
How much should my excess be?
As a general guide, standard excesses tend to range from around $200 up to $700, but could be higher or lower depending on your circumstances.
What should I set my voluntary excess at?
The voluntary excess amount that you commit to will mostly be determined by the disposable income you have access to if the need for a claim arises. It should be set at an amount that you can comfortably manage to pay whilst taking the inclusiveness of compulsory excess into consideration.
How do you choose excess?
Similarly, choosing an excess is about:
- Looking back at past experience and what you expect to encounter in future, then.
- Factoring in your financial situation, before.
- Deciding on what dollar amount you can commit to in securing financial cover when you need it.
Can I claim my insurance excess back?
If you were in an accident and it wasn’t your fault, there’s a chance you may be able to get your excess back or at least a portion of it. However, only your insurance company can recover this money; you can’t go directly to the guilty party yourself. This only applies if you weren’t the cause of an accident though.