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By Admin 4 years ago

Car hire damage waiver insurance

Car hire damage waiver insurance

The difference is apparent in one of the most basic and common things we are likely to do when travelling abroad. In the UK and Europe, for instance, you are more likely to talk about hiring a car; in North America, it is commonly described as renting a car – a lengthy discussion about English usage of these terms on the two continents may be found on Stack Exchange (https://english.stackexchange.com/questions/126497/whats-the-difference-between-rent-and-hire-in-british-and-american-english).
 
Damage waivers or insurance?
Language differences also extend into the way in which you might refer to the forms of protection available against loss or damage to the hire car for which you are responsible:

- In the UK and Europe, this is likely to be called hire car insurance.

- In North America, it is more likely to be described as a damage waiver for your car rental.

In the latter, car rental companies are especially careful to refer to damage waivers rather than insurance (simply because they are not licenced to sell insurance) and instead rely on a waiver as their agreement to waive their right to make a rental customer pay the whole cost of damage or loss to the rented vehicle.

 
Car hire damage waiver insurance
The reference to the rental company waiving its right to recover the full cost of any loss or damage is important.
 
Despite there being a loss or damage waiver in place, in practically every instance the rental company is still likely to charge the customer a “deductible”. This is the North American term for what most British drivers are likely to recognise as an excess – that part of the cost of any loss or damage for which the insured remains financially responsible.
 
The size of that deductible or excess may be substantial – the equivalent of £1,000 or more, depending on the rental company you have chosen and the type of car you want to hire.
 
That is why here at Bettersafe, we arrange standalone insurance for drivers intending to hire a car in North America that provides not only a comprehensive form of Collision Damage Waiver (CDW) but also cover for any deductible (or excess) you might need to pay in the event of loss or damage.
 
Indeed, we go one step further and also include in our policies an additional Supplemental Liability Insurance (SLI), which is also an important safeguard when driving in North America. There, the minimum amount of your legally required third party liability insurance may be surprisingly low, unlike the unlimited third party liability cover you are required to hold in the UK and Europe.
 
In North America, therefore, this leaves you with the potential liability of having to make up the difference in what might amount to a very considerable third party claim (especially if third party injuries are involved). Supplemental Liability Insurance (SLI) represents your protection against such claims.