In the auto insurance sector the rental car insurance is also better known as loss damage waiver or collision insurance but it has been derided by experts in this field as the cash cow for car rental companies. Rental cars need not be insured unlike the primary vehicles. There are some auto insurance policies that can provide partial coverage to rental cars. There are a number of exclusions and the damage waivers are not entirely the comprehensive cover that one can expect as it is full of exemptions such as exclusions for property damage and higher deductibles. The credit card companies may also offer coverage at no additional cost.

The collision damage waivers are not considered as insurance in the strict sense. They are actually agreements that state that the rental company cannot levy some of the damages on the customer. It normally costs anywhere between $15 and $25 per day. But, most of the states have a minimum requirement which covers injury, death, as we ... Read more »