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How do rental car agencies profit from selling Collision damage waivers?
Wiki User
∙ 13y ago
It's a small additional fee per day, so it increases the revenue from each rental customer. The risk is relatively distributed. That is, of 100 people who buy the damage waiver, perhaps 2 will get into an accident. Overall, this is still profitable for the company.
It's actually a good deal for the customer. Many people believe that their own auto insurance policy covers rental cars, but this is usually not the case (or the coverage is partial). One exception that I know about is AAA auto insurance.
If you buy the full coverage on a rental car at the time of rental, it typically completely absolves you of any liability in the event the car is damaged. You don't pay a deductible (or the amount is reduced), and the incident does not go on your record. This protects your own insurance premium from going up.
It's important to note that in many cases, you are still considered responsible for damage to a rental car that isn't your fault, such as striking road debris.
As with all rental contract details, you should read your contract carefully and ask for clarification of company policies. Don't assume that what I have said above applies to all situations.
Wiki User
∙ 13y ago
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What are the benefits of a visa signature card?
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Repairing damage caused by a collision.
Which insurance companies offer collision insurance?
The forthcoming insurance companies offer collision insurances: Insurance4CarHire, Auto Rental Collision Damage Waiver, Rental Cars and the Collision Damage Waiver, etc.
What does collision mean in economics?
The term collision in insurance covers the cost of damage to a car that is the fault of the insured. Collision insurance does not cover any damage caused from vandalism or theft.
What collision damage waiver with no excess mean?
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collision
When is a car comprehensively insured?
Comprehensive is a type of coverage you can add to an automobile policy. Comprehensive coverage is a physical damage coverage that includes damage to your vehicle that is not included in collision coverage. Collision coverage is damage done when you hit something or turn the vehicle over. Comprehensive includes fire, theft, vandalism, and animal collision. You can have comprehensive without collision but not collision without comprehensive.
When must you report a collision to the DMV?
Within 10 days of the collision no matter how much damage occurred.
What does collision insurance cover?
It covers damage to your vehicle resulting from an at fault collision with another vehicle or object.
What does CDW excess mean?
Collision Damage Waiver
Explain why a high-speed collision might cause more damage to vehicles then a low- speed collision?
because the high speed collision has more energy that it is using when the damage is occuring love Shanika L. Jackson♥
Can a rear end collision damage a fuel pump?
Yes
