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Confusion over car rental insurance could cost travelers dear

Written by  Tuesday, 07 July 2015 00:00

Toy car on insurance policy

Over a quarter (26%) of US drivers renting a car have driven without fully understanding what insurance they had and what they were covered for.

According to a new YouGov survey, a quarter (25%) don't know what Collision Damage Waiver [CDW] is and over a third (36%) don't know what Loss Damage Waiver is.

The survey of car renters, commissioned by Insuremyrentalcar.com, a new specialist provider of CDW/LDW cover, revealed that 39% are not aware that they could be potentially liable to the rental company for the full cost of the car if they don’t have the right insurance; and 6% normally drive rental cars without any CDW/LDW insurance protection at all.

In the US there is no statutory obligation to provide insurance to cover damage to a rental vehicle and if a CDW / LDW waiver isn’t in place the customer leaves themselves liable for the entire value of the car, plus any towing and administrative charges that the rental company may be exposed to in the event of an accident.

Travelers will normally use either their own credit cards (17%) or their auto insurance (39%) to cover these waivers but many do not realise the pitfalls of doing this. For instance 65% are unaware that credit card insurance is often secondary cover, meaning it pays only what can't be first recovered from other insurance, held by the traveler, which could mean a big hit on their regular auto insurance.

An alternative is to buy a specialist CDW / LDW policy. However policies sold at the rental desk can cost up to $30 a day or $213 a week*, which is over $195 more than a standalone policy from an independent company like Insuremyrentalcar.com, which charges from only $17.50 for a single trip policy (up to 31 days in length) or $93.99 for an annual policy - a significant saving.

“People need to get their heads around car rental insurance, particularly when the potential replacement cost for a mid-size car is about $30,000, as ignorance could cost them dear," said Ernesto Suarez, Insuremyrentalcar.com founder and CEO. “With the risks of inadequate insurance so high travelers should make sure they fully understand their insurance options and consider a stand-alone CDW/LDW policy from a company like Insuremyrentalcar.com for peace of mind.”

Insuremyrentalcar.com offers CDW / LDW from only $7.50 per day, $17.50 per trip, or $93.99 for an annual policy. Its policies offer LDW coverage of up to $100,000**; can be purchased from six months to one day in advance; cover rental car use at home and overseas; and are available for purchase by residents of 46 US States***.

* Insuremyrentalcar.com compared the prices of five rental companies (Alamo, Enterprise, Hertz, Avis and Dollar) in the seven destinations of Chicago, Los Angeles, Seattle, Dallas, Denver, New York and Orlando from May 23 to May 30 2015 (Memorial Day) to reveal the hidden 'extra' costs at the rental desk. It found that Hertz in Seattle, Dallas, Orlando and Denver charges $213 (or $30 a day) for CDW/ LDW cover.

** The actual level of cover may vary by state and product selection. Please check the Insuremyrentalcar.com website for full details.

***Not currently available for residents in Alaska, Florida, Hawaii, Massachusetts and Vermont.

For more information please contact Frances Knox This email address is being protected from spambots. You need JavaScript enabled to view it. . Full data is available on request.

All figures, unless otherwise stated, are from YouGov. Total sample size was 2,358 adults, 1,372 of which have rented a car. Fieldwork was undertaken between May 28 – June 1, 2015. The survey was carried out online. The figures have been weighted and are representative of all US adults (aged 18+).


Launched in January 2014, Insure My Rental Car offers competitively priced Loss Damage Waiver cover for US travelers renting vehicles and aims to make it easier for drivers to understand their options and save money.

Insuremyrentalcar.com was created specifically for US residents renting within the USA and overseas but also caters to Non-US residents traveling inbound to the USA.

For more information please visit www.insuremyrentalcar.com.