Visa issued Auto rental collision DamageWaiver program means I don't have to buy insurances from rental compan


Question:
I found interesting benefit reading the policies after issed in Visa. It was Auto Rental Collision Damage Waiver Program(CDW). It said basically I don't need to purchase the insurances rental company insists on. What is this? Was I misunderstood.?

Answer:
That only covers for any damage that would be covered under Collision (as in you hit a tree, or another car). Collision only covers for the car that you are driving, not any else. In other words, if you drive the rented car into a house, and the car blows up, collision will cover the car, but not the house (that would be under liability).

You will still need to have liability coverage coverage if you are going to be driving.
If you already have an auto insurance policy in force, you may get insurance coverage if you rent a vehicle, but there are limitations. For instance, some companies, if you rent a vehicle, only liability gets transferred, sometimes it is at the minimum liability level. I know my company, State Farm, it's the entire insurance coverage that gets transferred.

Also, it depends on what area you are renting the car. Generally it's okay if you're in the same country, but anywhere else, you should definitely check. Many companies are okay with Canada, but placed tight restrictions on Mexico. You should call your agent to see if you can get coverage through your current policy.
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