The article, written by journalist Aaron Crowe, said that a driver in the US could spend, on average, $393 on extras such as insurance, a child's car seat and a GPS system, adding up to a 73 percent increase from the average $554 to rent the car. Ernesto advised car renters to not always pick the car with the cheapest headline price but to take into account any additional costs which could bump up the price.
The news report, which used our new YouGov survey findings, also reported that 36 percent of the people surveyed described the Collision Damage Waiver (CDW) and Loss Damage Waiver (LDW) bought from the rental company as a “ripoff.” CDW/LDW is the costliest extra that drivers will be sold when they pick up their rental car.
On the issue of why people buy rental insurance, the article said the below:
"Car renters may want or need to buy the insurance for a few reasons. Without LDW insurance on their own car, renters may be required by the rental company to buy their car rental insurance policy. Liability requirements vary by state, so check your state’s minimum liability limits before renting.
"If you don’t have any auto insurance at all, you also may have to buy CDW/LDW from the rental car company or elsewhere.
"Another reason to buy it is if your car — the one you own at home that you’re not renting — has a low market value. Many people don’t realize that insurers only pay the value of your car, not the rental car that’s damaged, Suarez says, so if your car is old and isn’t worth nearly as much as a new rental car is, you’d have to pay out of pocket."
Insuremyrentalcar.com sells CDW/LDW from $5 per day, $17.50 per trip or $94 for an annual policy. LDW coverage is for up to $100,000 and can be bought from six months to a day in advance.
To read the article in full please click here.