How Much Does a Loss Damage Waiver Cost?
A loss damage waiver, also referred to as a collision damage waiver, is an optional rider that is available to you at a car rental company. By signing the damage waiver at the time of rental, you will be covered in the case of an accident while driving the rental car. This will make the car rental more expensive, but it will also save you a lot of money if an accident should occur. The price of a loss damage waiver will be determined by the car rental company, the size and type of the car, and other factors.
How much is it?
- Depending on the rental car company and the specific car you are looking to rent, the costs will vary anywhere from $15 to as high as $40 per day.
- According to MyMoneyBlog.com, the average loss damage waiver is going to cost around $20 per day.
- CarsDirect.com claims the same thing and states that you should expect to pay around $20 per day, on average.
Rental Car Company
Price Estimate Per Day
$10 to $25
$10 to $40
$10 to $37
$7 to $35
$10 to $20
$10 to $40
$10 to $25
$9 to $35
What is going to be included?
- Depending on the car rental company you use, some may include a deductible similar to a car insurance policy. There also may be limits on the amounts that are covered.
- If you purchase a loss damage waiver, the rental car company will cover all incidents such as the vehicle being stolen, accidents, vandalism or weather related situations. As long as the driver complies with the contract, the rental car company will cover most damage.
- Even if you do purchase a loss damage waiver, a rental car company may not cover you if you were responsible for the accident.
What are the extra costs?
- A loss damage waiver may not cover liability or towing costs. If you want to be covered in case of an injury to someone in the accident or if a tow truck is needed, these riders will have to be separately purchased. Adding liability will cost around $9 to $15 per day extra.
- Medical and ambulance waivers can also be added for a few extra dollars a day.
- If a car were to be damaged, the rental car company can charge a “loss of use” fee on top of the damages. So if you damaged a bumper that cost $500 and they needed four days to fix it, they could charge you $75 per day for each of those four days, bringing the total to $800 total.
Tips to know:
- If you lack proof of coverage from another auto insurance company, the rental car company may require to you purchase this waiver rather than have it be optional.
- If you are going to use your credit card to cover damage or theft, keep in mind that there are a lot of limitations. This can include covering the cardholder only, certain limits and exclusions. Wikipedia has a credit card reference chart to which you can refer to see what is going to be covered.
- Before you rent a car, make sure that you ask your personal insurance company to see if you are covered through your normal policy even if driving a rental car.
How can I save money?
- Many credit cards offer insurance for theft and damage to rental cars. Refer to your terms and conditions to see if your card will cover something such as this. Most of the time, the credit card company will require that you contact your primary insurance first.
- Call up the rental car company ahead of time to see what they are going to charge. If it is going to be $15 per day and you need the car for 7 days, you may want to take the risk for $105. If you have no insurance and you total a $25,000 car, you are going to be very sorry that you did not pay for the insurance!
- ALL rental car companies are going to vary with their pricing. Use comparison tools such as Priceline.com, where you can name your own rental car price and save more than 40%.
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