How to avoid car rental damage charges
Car rental companies offer rates that include the subscription of compulsory insurance in case of accident. Beyond compulsory insurance, solutions vary according to the different rental companies. Some offer the insurance subscription or optional benefits.
Check the condition of the vehicle before leaving.
On receiving the keys remember to check the general condition of the vehicle in the presence of the lessor. If necessary, do add to the car rental contract all identified problems (scratches, damaged tires ...).
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Caution with car rental deposit.
In most cases, the deposit is made by the imprint of your credit card. It appears on your rental agreement. The agency will then take any supplements (fuel, franchising, ...) directly from your bank account. For peace of mind, ask that the deposit amount was specified.
Car hire and insurance: be vigilant.
Re-read your contract carefully before signing it. There may be appearing optional insurance products that you do not wish to subscribe. Please immediately remove your file.
The L.I.S. (Liability Insurance Supplement) or liability insurance or third party insurance. It is the largest insurance. It covers you for damage you might cause to third parties, persons or property in case of accident.
CDW or LDW (Collision Damage waiver or Loss Damage Waiver).
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This guarantees "property damage" in case of accident or theft of the rented vehicle.
In case of damage, your liability is incurred, the amount of compensation remains at your expense. With the option CDW / LDW your costs will be reimbursed.
In most countries, CDW also covers theft of the vehicle. This, however, is still the case and it is important to check at the time of vehicle ownership.
P.A.I. (Personal accident insurance)
This is insurance that covers injuries of the driver and passengers.
In principle, the final amount of the rent is set when returning the car. In this way, the customer pays all the additional costs of car rental. That costs were not fully established at the signing of the rental agreement. It may be because of certain risks (eg. fuel surcharges). For payment, the rental company must accept any form of payment.
In reality, and for purely practical reasons, the car rental companies prefer payment by credit card. This payment method allows the renter to avoid as much as possible the risk of insolvency on the part of his client. Given the importance of the amounts at stake. Indeed, the renter uses the credit card imprint as the guarantee of payment. Furthermore, the use of the card allows the renter to reduce the administrative procedure. This includes identity, home, renter of creditworthiness. This intervenes prior to the conclusion of the car rental.
Procedure in case of accident.
Various scenarios of traffic accident can occur when driving a rented car. The legal consequences may vary considerably based on clauses in the car rental agreement signed. It is therefore essential to learn about the possible consequences in case of accidents.
Optional accident insurance underwriting.
The customer has the possibility of optional insurance. Usually it is associated with insurance against theft of the vehicle. Optional insurance usually does not prevent the renter from the responsibility for damage. He will pay the amount of the deductible amount under the contract. The deductible is the amount remaining to the tenant in the event of theft or damage caused to the rented vehicle. The tenant can sometimes choose a warranty that supports a portion of the amount of the deductible. But never all of this franchise.
Accident without optional insurance underwriting.
In an accident involving the rental car, the situation varies depending on the case. Usually accident is caused by the driver of the other vehicle. The lessee is therefore not responsible for the accident. It is the insurance of the responsible for the accident that supports the amount for damage to the rental vehicle. This support results from the third party insurance. That is to say, it is a support for damages caused to other vehicles as his.
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This third party insurance includes by the responsible for the accident both bodily injury and materials. That is (hospitalization, rehabilitation and vehicle repairs. It concerns both the renter of the vehicle, the rented vehicle. The third parts and also their vehicles. There may be cases if the tenant is responsible for the accident. As well as the damage may be caused to third parties (other motorist, pedestrian, cyclist). The compulsory liability insurance supports the amount of damages. However, this compulsory liability insurance does not support the amount of bodily injury to the vehicle renter. Nor it is of damage to the rented vehicle. In this case, the rental agreement establishes the terms of responsibility of the tenant.