Is Pemco paying for diminished value as a result of a collision? How about Loss of use, is it covered. Maybe this representative is talking about Pemco but not all companies will cover those issues.
While an auto policy may cover most claims involving a rental car, there are many that won\’t be covered, not to mention disagreements about valuation. Increasingly, rental car companies are charging for diminution of value which is NOT covered by auto policies.
I know for a fact of credit card charges of close to $5,000 for diminished value and I\’ve heard of one approaching $10,000 on an upscale SUV rental, but haven\’t confirmed it.
An agent should NEVER \”recommend\” that a customer not buy the Loss Damage Waiver. While LDWs seem to be grossly overpriced, there is great risk in not purchasing them, not to mention the peace of mind they bring.
Here is an article that gives 10 reasons why it\’s advisable to purchase the LDW even though there is necessarily some duplication in coverage by doing so:
This looks like a publicity-grabbing ploy. The headline of the article says that people may not need the collision waiver and makes a few statements to illustrate why.
However, if you keep reading, you\’ll find a laundry list of reasons why insureds SHOULD by the collision waiver. One good one not even mentioned is that, if the vehicle is damaged enought that it must be sold at auction (which is VERY likely since rental companies don\’t want heavily repaired autos on the road), the insured is increasingly likely to get nailed with a diminished value charge that will NOT be covered by auto insurance.
This charge will almost certainly be hundreds of dollars and can easily be thousands of dollars. Anyone today is crazy if they don\’t buy the collision waiver (actually, virtually ALL rental companies now call them loss damage waivers) for a few days rental.
Again, the content of the article doesn\’t support the headline. This smacks of some PR attempt that has more caveats than sound advice.
If you\’re an agent, you\’re asking for an E & O claim if you suggest to an insured that they don\’t need to buy the waiver. Forget this article and continue to recommend your clients purchase the rental company waiver.
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Is Pemco paying for diminished value as a result of a collision? How about Loss of use, is it covered. Maybe this representative is talking about Pemco but not all companies will cover those issues.
While an auto policy may cover most claims involving a rental car, there are many that won\’t be covered, not to mention disagreements about valuation. Increasingly, rental car companies are charging for diminution of value which is NOT covered by auto policies.
I know for a fact of credit card charges of close to $5,000 for diminished value and I\’ve heard of one approaching $10,000 on an upscale SUV rental, but haven\’t confirmed it.
An agent should NEVER \”recommend\” that a customer not buy the Loss Damage Waiver. While LDWs seem to be grossly overpriced, there is great risk in not purchasing them, not to mention the peace of mind they bring.
Here is an article that gives 10 reasons why it\’s advisable to purchase the LDW even though there is necessarily some duplication in coverage by doing so:
http://www.charterco.com/insurance/documents/ins.cdwldw.pdf
This looks like a publicity-grabbing ploy. The headline of the article says that people may not need the collision waiver and makes a few statements to illustrate why.
However, if you keep reading, you\’ll find a laundry list of reasons why insureds SHOULD by the collision waiver. One good one not even mentioned is that, if the vehicle is damaged enought that it must be sold at auction (which is VERY likely since rental companies don\’t want heavily repaired autos on the road), the insured is increasingly likely to get nailed with a diminished value charge that will NOT be covered by auto insurance.
This charge will almost certainly be hundreds of dollars and can easily be thousands of dollars. Anyone today is crazy if they don\’t buy the collision waiver (actually, virtually ALL rental companies now call them loss damage waivers) for a few days rental.
Again, the content of the article doesn\’t support the headline. This smacks of some PR attempt that has more caveats than sound advice.
If you\’re an agent, you\’re asking for an E & O claim if you suggest to an insured that they don\’t need to buy the waiver. Forget this article and continue to recommend your clients purchase the rental company waiver.