Collision Damage Waiver with Enterprise [Is It Even Worth It?]

As you can probably guess from the title, today we’re going to talk about whether or not you should buy the rental car coverage that’s offered to you at the counter of a rental car place such as Enterprise. I’m really excited to share my thoughts on this topic because I’ve had experience on both sides of the situation. For some years now, I’ve had experience with Enterprise Rental Car, which is the largest rental car company in the world. So, I’ll explain things to you from a good perspective.

A lot of people will tell you not to get the insurance offered at the rental car counter because you already have insurance through your regular car insurance company, such as State Farm, Allstate, or Geico. But the question is, does your personal insurance coverage extend to the rental car?

And the answer is, usually yes. As long as you have a regular car, it could be a sedan or a minivan, your personal insurance will usually cover you when you’re driving a rental car. However, if you’re renting a bigger vehicle, like a box truck or a U-Haul, your coverage might not extend to that.

Collision Damage Waiver Enterprise

So, when you’re at the rental car counter, they’ll often offer you a list of coverages to choose from. The most popular one is usually the collision damage waiver, which is also sometimes called the lost damage waiver. What this does is basically say that the rental car company can’t go after your insurance company to get money for any damages you might cause to the rental car while you’re driving it.

Personally, I think the collision damage waiver is a smart investment. Let’s say you’re driving a rental car and someone rear-ends you, or you hit a pole, or something else happens. When you return the car to the rental car company, all you have to do is tell them what happened, and they’ll take care of the rest. They’ll have to pay for the damages because you opted into the collision damage waiver. It’s an extra layer of protection, just in case something goes wrong.

It looks like an extra expense, but it’s worth it. I’ve seen people get stuck with huge bills because they didn’t opt for the collision damage waiver. And let me tell you, it’s not fun to deal with. So, if you’re renting a car, I would definitely recommend considering the collision damage waiver. It’s better to be safe than sorry, right?

What If You Don’t Opt for the Collision Damage Waiver?

So, what happens if you don’t opt into the collision damage waiver and you get into an accident while driving a rental car? In that case, Enterprise will go after your personal insurance to cover the damages. But why would you want to expose your personal insurance to a car that you’re only renting for a week or 4 days? It’s just not worth it, because once you have an accident or loss on your insurance record, it stays there for 3 years.

So, let’s say 2 years down the line, you’re with Geico and you want to switch to Allstate. When the agent at Allstate pulls your record, they’re going to see that you had a loss or a claim, and the payout was made, which can potentially raise your premium and even make you ineligible for certain insurance companies.

Collision Damage Waiver Has a Loss of Use Coverage

Let’s say you buy the coverage and the car needs to get fixed. Let’s say it’s in the shop for 10 days. A rental car company such as Enterprise will do the math and figure out how much money they’re losing per day on the vehicle. If you don’t get the collision damage waiver, the rental car company will come after your insurance, and if you have a loss of use coverage on your insurance, Enterprise will cover it.

But that will be a claim, and if you don’t have that coverage, they’ll come after you, and you’ll have to pay out of pocket. If the car takes 20 days to fix, and it’s $50 a day. You’ll be responsible for paying that every day the vehicle is out of service, plus depreciation. That can add up quickly!

The collision damage waiver is something you should consider. It keeps your insurance premium low, and you don’t have to worry about getting into an accident. You can just walk away hands-free. Don’t think that the people at the Enterprise counter or whoever is trying to take advantage of you. They’re really trying to have your best interest at heart, and they’re a customer service-based company.

Credit Card Coverage: Is It Enough?

I know some people will say, “But I have it through my credit card.” Honestly, that can be a big mess. I’ve seen cases where your credit card will make you pay upfront, and then they’ll reimburse you, but it can take months and months to get that money back. So, just get the damage waiver. The collision damage waiver comes at different prices. At Enterprise, the collision damage waiver is between $5.99 and $15.67 per day, which is absolutely worth it.

If you file a claim or damage the car, you’ll have to pay your deductible anyway. Let’s say you’re in the car for 5 days – that’s $100 just in case you get into an accident. With the collision damage waiver, you can walk away hands-free.

Now, let’s say you do get into an accident while driving a rental car, and you have to pay your $500 or even $1,000 deductible. Was it even worth it to not take the collision damage waiver? You don’t want to have anything on your record or on your insurance. Let’s say you hit somebody else’s car, and now you’re responsible for their vehicle. Well, the collision damage waiver only covers the rental car that you’re driving, not other people’s vehicles. Therefore, if you rear-end someone, you would have to file a claim with your insurance to pay for the liability portion of it.

Liability Insurance Protection

If you do get liability insurance or liability coverage with the rental car company, then that will be covered as well. The two coverages that you should get with the different rental car companies are definitely the liability and the collision damage waiver. You want to walk away hands-free. You don’t want to be in a situation where you have to file a claim with your insurance on a vehicle that’s not even yours.

You definitely do not have to have any type of insurance to rent a vehicle, and you do not have to take the coverage. They might try to word it in a way that makes it sound like you have to take the coverage if you don’t have insurance, but you absolutely do not. Any coverage that Enterprise offers you is completely optional. All you need is a valid driver’s license to rent a car.

It’s not smart if you don’t have insurance to take the optional coverage, but let’s say you just needed it for a day and you couldn’t afford it – you don’t have to get the coverage on the vehicle.

It’s always better to be safe than sorry. If you’re not sure what kind of coverage you need or what kind of insurance you have, it’s always better to err on the side of caution and get the collision damage waiver and liability insurance. That way, you can drive away knowing that you’re fully covered and protected in case anything happens. It’s worth the extra few dollars a day for peace of mind.

Read AlsoCheapest Car Insurance for International Students in USA

Leave a Reply

Your email address will not be published. Required fields are marked *

You May Also Like